With the deep analysis of the above options, it is suggested that the company ought to select the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would allow the company to not just introduce new and ingenious products in the market it would likewise minimize the high expenses on R&D under alternative 2 and increase the profit margins. It would enable the business to increase its share costs too, as investors want to invest more in business with considerable R&D costs and increase in the total worth of the business.
Action and implementation Strategy
Technique can be executed successfully by establishing certain short-term as well as long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Honest Tea should perform various activities to implement 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 brand names, which generate most of its income.
• Examine the existing target market along with the marketplace segment which is not include in the business's circle.
• Evaluate the present financial data to measure the quantity that must be spent on the R&D and acquisitions.
• Evaluate the possible financiers and their nature, i.e. do they want long term advantages (capital gain), or the want early revenues (dividend). It would let the business to know that how much amount must be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the company has prospective experience to deal with. Obtain most beneficial organizations with a strong dedication to health, to construct the client's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Honest Tea worths and vision and to avoid potential risk of sunk expense.
Long Term Plan (1-10 years)
• Obtain companies with health in addition to taste element, as the base for the Honest Tea as a company producing healthy items has actually been constructed under midterm strategy and now the company might move towards taste factor also 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 significant time to construct brand-new products.
