With the deep analysis of the above alternatives, it is suggested that the business needs to select the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would make it possible for the business to not only present new and innovative products in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the revenue margins. It would allow the company to increase its share costs too, as investors want to invest more in companies with substantial R&D costs and increase in the overall worth of the business.
Action and implementation Strategy
Method can be executed effectively by establishing certain short-term in addition to long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Dura Pharmaceuticals must carry out various activities to implement its NHW method effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brands, which generate the majority of its income.
• Examine the current target audience along with the market section which is not include in the company's circle.
• Evaluate the present financial data to measure the amount that must be invested in the R&D and acquisitions.
• Evaluate the possible investors and their nature, i.e. do they desire long term advantages (capital gain), or the want early earnings (dividend). It would let the company to know that how much amount needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the business has possible experience to deal with. Acquire most favorable organizations with a strong commitment to health, to develop the client's understandings in the right direction.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Dura Pharmaceuticals values and vision and to avoid prospective danger of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health along with taste factor, as the base for the Dura Pharmaceuticals as a company producing healthy products has actually been built under midterm plan and now the company might move towards taste element as well to understand the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to develop brand-new products.
