With the deep analysis of the above alternatives, it is suggested that the company should choose the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would make it possible for the company to not just present brand-new and innovative items in the market it would also lower the high expenditures on R&D under alternative 2 and increase the earnings margins. It would enable the company to increase its share costs as well, as investors are willing to invest more in companies with considerable R&D costs and increase in the total worth of the business.
Action and implementation Strategy
Technique can be implemented effectively by establishing particular short term as well as long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Eddie Bauer A must perform various activities to execute its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brand names, which create the majority of its revenue.
• Evaluate the present target audience along with the marketplace sector which is not include in the business's circle.
• Examine the present financial data to determine the amount that must be spent on the R&D and acquisitions.
• Analyze the prospective investors and their nature, i.e. do they want long term benefits (capital gain), or the want early profits (dividend). It would let the business to understand that how much quantity needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the company has prospective experience to handle. Acquire most beneficial companies with a strong commitment to health, to construct the client's understandings in the ideal direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Eddie Bauer A values and vision and to prevent prospective risk of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste factor, as the base for the Eddie Bauer A as a company producing healthy products has been built under midterm plan and now the business could move towards taste aspect as well to comprehend the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to construct brand-new items.
