With the deep analysis of the above alternatives, it is suggested that the company must pick the alternative 3 in order to keep 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 ingenious items in the market it would likewise decrease the high expenditures on R&D under alternative 2 and increase the revenue margins. It would make it possible for the business to increase its share costs as well, as financiers want to invest more in business with considerable R&D costs and boost in the overall worth of the business.
Action and implementation Strategy
Technique can be carried out effectively by establishing certain short term as well as long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Forner Carpet Company should carry out various activities to execute its NHW strategy 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 most of its revenue.
• Evaluate the existing target audience in addition to the market sector which is not consist of in the business's circle.
• Analyze the existing financial information to determine the amount that needs to be invested in the R&D and acquisitions.
• Examine the prospective financiers and their nature, i.e. do they want long term benefits (capital gain), or the desire early earnings (dividend). It would let the business to know that how much amount ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the business has prospective experience to deal with. Obtain most beneficial companies with a strong dedication to health, to construct the customer's understandings in the best instructions.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Forner Carpet Company values and vision and to prevent possible danger of sunk cost.
Long Term Plan (1-10 years)
• Get organizations with health as well as taste factor, as the base for the Forner Carpet Company as a company producing healthy products has been built under midterm plan and now the business could move towards taste element 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 new items.
