With the deep analysis of the above alternatives, it is suggested that the company must pick 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 just introduce brand-new and innovative products in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the earnings margins. It would allow the business to increase its share rates also, as financiers are willing to invest more in business with substantial R&D costs and boost in the total worth of the company.
Action and implementation Strategy
Technique can be executed effectively by establishing certain short term in addition to long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Essar Energy Indian Gaap Us Gaap Or Ifrs A ought to carry out different activities to implement 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 most of its revenue.
• Evaluate the current target audience as well as the market segment which is not include in the business's circle.
• Examine the present financial data to measure the amount that needs to be spent on the R&D and acquisitions.
• Examine the prospective financiers and their nature, i.e. do they desire long term benefits (capital gain), or the desire early profits (dividend). It would let the business to understand that just how much amount ought 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 favorable companies with a strong commitment to health, to develop the client's perceptions in the best direction.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Essar Energy Indian Gaap Us Gaap Or Ifrs A values and vision and to avoid prospective danger of sunk cost.
Long Term Plan (1-10 years)
• Get organizations with health in addition to taste aspect, as the base for the Essar Energy Indian Gaap Us Gaap Or Ifrs A as a business producing healthy items has been developed under midterm strategy and now the business might move towards taste element 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 substantial time to develop new products.
