With the deep analysis of the above alternatives, it is suggested that the business must pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would make it possible for the company to not only introduce brand-new and ingenious products in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the profit margins. It would allow the business to increase its share rates also, as financiers are willing to invest more in companies with considerable R&D costs and increase in the total worth of the business.
Action and implementation Strategy
Strategy can be carried out efficiently by developing specific short term along with long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Grupo Garantia Globalization Industry Rivalry And Conglomerate Diversification In Brazil A must carry out different activities to implement its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brand names, which produce the majority of its earnings.
• Examine the existing target audience in addition to the marketplace segment which is not include in the business's circle.
• Analyze the current financial data to measure the quantity that must 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 want early profits (dividend). It would let the company to understand that just how much amount must be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the company has possible experience to handle. Get most beneficial companies with a strong commitment to health, to build the client's perceptions in the right direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Grupo Garantia Globalization Industry Rivalry And Conglomerate Diversification In Brazil A worths and vision and to avoid possible danger of sunk expense.
Long Term Plan (1-10 years)
• Acquire organizations with health along with taste factor, as the base for the Grupo Garantia Globalization Industry Rivalry And Conglomerate Diversification In Brazil A as a company producing healthy products has actually been built under midterm plan and now the company could move towards taste element as well 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 brand-new items.
