With the deep analysis of the above options, it is recommended that the company needs to choose the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the company to not only present brand-new and ingenious items in the market it would also reduce the high expenditures on R&D under alternative 2 and increase the revenue margins. It would enable the company to increase its share rates too, as financiers want to invest more in companies with significant R&D spending and increase in the overall worth of the business.
Action and implementation Strategy
Method can be implemented effectively by establishing specific short-term as well as long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Gene Patents A should perform numerous activities to execute its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brands, which create most of its income.
• Evaluate the present target audience in addition to the market segment which is not consist of in the company's circle.
• Evaluate the present financial information to measure the quantity that needs to be spent on the R&D and acquisitions.
• Evaluate the potential financiers and their nature, i.e. do they desire long term benefits (capital gain), or the desire early earnings (dividend). It would let the company to know that how much quantity needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the business has potential experience to handle. Obtain most beneficial companies with a strong dedication to health, to develop the customer's understandings in the ideal direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Gene Patents A values and vision and to prevent prospective threat of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste aspect, as the base for the Gene Patents A as a business producing healthy items has actually been developed under midterm strategy and now the business might move towards taste factor too to grasp the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to build brand-new products.
