With the deep analysis of the above alternatives, it is advised that the business should pick the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would make it possible for the business to not only introduce brand-new and innovative items in the market it would likewise minimize the high expenditures on R&D under alternative 2 and increase the profit margins. It would allow the company to increase its share costs too, as financiers are willing to invest more in companies with substantial R&D costs and boost in the overall worth of the company.
Action and implementation Strategy
Technique can be implemented efficiently by developing certain short term along with long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Great Eastern Toys B must carry out various activities to implement 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 brands, which generate the majority of its income.
• Evaluate the existing target market along with the market sector which is not include in the company's circle.
• Evaluate the existing financial information to determine the amount that must be spent on the R&D and acquisitions.
• Evaluate the potential investors and their nature, i.e. do they want long term advantages (capital gain), or the want early profits (dividend). It would let the company to know that how much quantity needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the business has prospective experience to handle. Acquire most favorable companies with a strong commitment to health, to build the consumer's understandings in the best instructions.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Great Eastern Toys B worths and vision and to prevent potential risk of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste aspect, as the base for the Great Eastern Toys B as a business producing healthy items has been built under midterm strategy and now the company might move towards taste factor also to comprehend the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to develop new products.
