With the deep analysis of the above alternatives, it is recommended that the company should pick the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the business to not only introduce brand-new and innovative products in the market it would also minimize the high expenses on R&D under alternative 2 and increase the profit margins. It would enable the company to increase its share prices also, as investors are willing to invest more in companies with substantial R&D spending and boost in the total worth of the business.
Action and implementation Strategy
Strategy can be carried out efficiently by establishing certain short-term along with long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Eddie Bauer B ought to carry out various activities to execute its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brand names, which generate the majority of its earnings.
• Evaluate the present target market as well as the marketplace segment which is not consist of in the company's circle.
• Analyze the existing financial information to determine the quantity that ought to be invested in the R&D and acquisitions.
• Analyze the potential financiers and their nature, i.e. do they desire long term benefits (capital gain), or the desire early profits (dividend). It would let the company to understand that just how much amount ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the business has prospective experience to handle. Obtain most beneficial organizations with a strong dedication to health, to develop the customer's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Eddie Bauer B values and vision and to avoid possible threat of sunk cost.
Long Term Plan (1-10 years)
• Get companies with health in addition to taste aspect, as the base for the Eddie Bauer B as a company producing healthy products has been developed under midterm strategy and now the company could move towards taste aspect too 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 substantial time to construct brand-new items.
