With the deep analysis of the above alternatives, it is suggested that the company needs to select the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would enable the company to not only introduce brand-new and innovative products in the market it would also minimize the high expenses on R&D under alternative 2 and increase the earnings margins. It would make it possible for the company to increase its share rates as well, as financiers are willing to invest more in business with significant R&D costs and increase in the overall worth of the business.
Action and implementation Strategy
Strategy can be carried out successfully by establishing specific short term as well as long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Hermes Paris ought to carry out numerous activities to implement its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brands, which produce most of its revenue.
• Examine the current target market as well as the market segment which is not include in the company's circle.
• Evaluate the present financial data to determine the amount that should be spent on the R&D and acquisitions.
• Analyze the possible financiers and their nature, i.e. do they desire long term benefits (capital gain), or the want early profits (dividend). It would let the business to know that how much quantity needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the company has potential experience to deal with. Acquire most favorable organizations with a strong commitment to health, to develop 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 Hermes Paris worths and vision and to avoid potential danger of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health in addition to taste aspect, as the base for the Hermes Paris as a business producing healthy products has been built under midterm plan and now the business might move towards taste factor as well 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 significant time to develop new products.
