With the deep analysis of the above options, it is recommended that the company should choose the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the business to not just introduce brand-new and innovative items in the market it would also lower the high expenditures on R&D under alternative 2 and increase the profit margins. It would allow the business to increase its share costs too, as financiers are willing to invest more in companies with significant R&D costs and increase in the total worth of the company.
Action and implementation Strategy
Technique can be executed effectively by establishing specific short term as well as long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Equity Bank The Real Thing must carry out various activities to implement its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brands, which produce most of its earnings.
• Evaluate the existing target audience in addition to the market sector which is not consist of in the business's circle.
• Analyze the current financial data to determine the quantity that must be invested in the R&D and acquisitions.
• Evaluate the possible investors and their nature, i.e. do they want long term benefits (capital gain), or the want early revenues (dividend). It would let the business to understand that just how much quantity should be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the company has possible experience to deal with. Acquire most beneficial companies with a strong commitment to health, to construct the client's understandings in the right direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Equity Bank The Real Thing worths and vision and to prevent prospective threat of sunk expense.
Long Term Plan (1-10 years)
• Obtain companies with health in addition to taste aspect, as the base for the Equity Bank The Real Thing as a company producing healthy items has been built under midterm strategy and now the company could move towards taste aspect as well to understand the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to develop new items.
