With the deep analysis of the above options, 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 enable the company to not just present new and ingenious products in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the earnings margins. It would allow the business to increase its share costs as well, as financiers are willing to invest more in business with substantial R&D costs and increase in the total worth of the business.
Action and implementation Strategy
Method can be executed effectively by establishing certain short term along with long term plans. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Harbor City Electric should perform different activities to execute its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brands, which produce most of its profits.
• Evaluate the existing target market along with the marketplace segment which is not consist of in the business's circle.
• Examine the existing financial information to determine the amount that must be invested in the R&D and acquisitions.
• Analyze the prospective financiers and their nature, i.e. do they desire long term benefits (capital gain), or the desire early profits (dividend). It would let the company to know that just how much quantity must be spent on R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the company has possible experience to handle. Obtain most beneficial organizations with a strong dedication to health, to build the consumer's perceptions in the right direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Harbor City Electric worths and vision and to prevent prospective risk of sunk cost.
Long Term Plan (1-10 years)
• Acquire organizations with health in addition to taste element, as the base for the Harbor City Electric as a business producing healthy products has been developed under midterm strategy and now the business could move towards taste element as well to understand the customers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to develop brand-new products.
