With the deep analysis of the above alternatives, it is advised that the company ought to choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would make it possible for the company to not only present brand-new and innovative products in the market it would likewise minimize the high expenditures on R&D under alternative 2 and increase the earnings margins. It would allow the company to increase its share prices too, as financiers are willing to invest more in companies with substantial R&D spending and increase in the overall worth of the business.
Action and implementation Strategy
Technique can be implemented effectively by developing specific short-term as well as long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Fan Pier ought to carry out different activities to execute its NHW method effectively. 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 produce most of its income.
• Examine the present target audience along with the market segment which is not include in the company's circle.
• Analyze the present financial information to measure the amount that should 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 desire early profits (dividend). It would let the company to understand that how much quantity must be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the business has prospective experience to handle. Get most favorable organizations with a strong commitment to health, to develop the customer's perceptions in the best instructions.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Fan Pier worths and vision and to prevent potential danger of sunk expense.
Long Term Plan (1-10 years)
• Get organizations with health in addition to taste aspect, as the base for the Fan Pier as a company producing healthy products has been developed under midterm plan and now the business could move towards taste aspect also 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 develop brand-new items.
