With the deep analysis of the above alternatives, it is suggested that the company ought to pick the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the company to not only present 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 allow the business to increase its share rates also, as investors want to invest more in companies with considerable R&D costs and increase in the overall worth of the company.
Action and implementation Strategy
Strategy can be carried out efficiently by establishing certain short term in addition to long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Fiat Mio The Project That Embraced Open Innovation Crowdsourcing And Creative Commons In The Automotive Industry ought to perform various activities to implement its NHW method effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brand names, which generate the majority of its revenue.
• Examine the present target market as well as the marketplace sector which is not include in the company's circle.
• Analyze the current financial information to measure the amount that should be spent on the R&D and acquisitions.
• Analyze the prospective financiers and their nature, i.e. do they desire long term benefits (capital gain), or the want early revenues (dividend). It would let the company to know that just how much amount should be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the business has possible experience to deal with. Get most favorable companies with a strong commitment to health, to develop the customer's perceptions in the right direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Fiat Mio The Project That Embraced Open Innovation Crowdsourcing And Creative Commons In The Automotive Industry values and vision and to prevent possible threat of sunk expense.
Long Term Plan (1-10 years)
• Acquire organizations with health as well as taste factor, as the base for the Fiat Mio The Project That Embraced Open Innovation Crowdsourcing And Creative Commons In The Automotive Industry as a business producing healthy products has actually been constructed under midterm plan and now the business might move towards taste element as well to grasp the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to construct brand-new items.
