With the deep analysis of the above alternatives, it is recommended that the business should choose 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 items in the market it would also reduce the high expenditures on R&D under alternative 2 and increase the revenue margins. It would allow the company to increase its share costs too, as financiers want to invest more in business with considerable R&D spending and boost in the overall worth of the company.
Action and implementation Strategy
Method can be executed successfully by developing specific short-term along with long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Firestone Crises Across The Decades ought to perform different activities to implement its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brands, which generate most of its profits.
• Evaluate the existing target audience in addition to the market segment which is not include in the company's circle.
• Analyze the current financial data to measure the quantity that ought to 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 want early profits (dividend). It would let the business to understand that how much quantity should be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the business has possible experience to handle. Obtain most favorable companies with a strong dedication to health, to build the client's understandings in the ideal instructions.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Firestone Crises Across The Decades worths and vision and to prevent possible threat of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste element, as the base for the Firestone Crises Across The Decades as a company producing healthy products has actually been built under midterm plan and now the company could move towards taste aspect also 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 new items.
