With the deep analysis of the above alternatives, it is suggested that the company should select the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would make it possible for the company to not only introduce new and innovative items in the market it would also decrease the high expenses on R&D under alternative 2 and increase the profit margins. It would enable the business to increase its share costs as well, as investors want to invest more in companies with considerable R&D costs and boost in the overall worth of the business.
Action and implementation Strategy
Method can be implemented efficiently by developing certain short term in addition to long term plans. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Google In China ought to perform various activities to implement 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 brands, which generate most of its earnings.
• Analyze the present target market along with the market segment which is not consist of in the company's circle.
• Analyze the existing financial data to measure the amount that ought to be spent on the R&D and acquisitions.
• Evaluate the prospective financiers and their nature, i.e. do they want long term benefits (capital gain), or the want early revenues (dividend). It would let the business to know that how much quantity ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the company has possible experience to deal with. Obtain most beneficial companies with a strong dedication to health, to build the consumer's understandings in the best direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Google In China values and vision and to avoid possible danger of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health in addition to taste aspect, as the base for the Google In China as a company producing healthy products has actually been developed under midterm strategy and now the company could move towards taste element too to comprehend the customers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to develop new items.
