With the deep analysis of the above alternatives, it is recommended that the business ought to select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the business to not just introduce new and innovative products in the market it would also lower the high expenditures on R&D under alternative 2 and increase the earnings margins. It would enable the company to increase its share costs too, as investors are willing to invest more in companies with considerable R&D costs and boost in the overall worth of the company.
Action and implementation Strategy
Strategy can be carried out effectively by developing particular short term along with long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Hong Kong Business Intermediary The Dynamic Of Innovative Entrepreneurship need to perform numerous activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brand names, which produce the majority of its revenue.
• Analyze the current target market along with the market sector which is not consist of in the business's circle.
• Analyze the existing financial data to determine the amount that should be spent on the R&D and acquisitions.
• Analyze the prospective investors and their nature, i.e. do they desire long term benefits (capital gain), or the desire early revenues (dividend). It would let the company to know that how much amount ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the business has prospective experience to deal with. Get most favorable companies with a strong dedication to health, to build the customer's understandings in the best direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Hong Kong Business Intermediary The Dynamic Of Innovative Entrepreneurship values and vision and to avoid potential threat of sunk cost.
Long Term Plan (1-10 years)
• Get companies with health along with taste factor, as the base for the Hong Kong Business Intermediary The Dynamic Of Innovative Entrepreneurship as a business producing healthy items has been built under midterm strategy and now the company might move towards taste aspect also to comprehend the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to build brand-new items.
