With the deep analysis of the above options, it is suggested that the company should pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the company to not just present new and ingenious items 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 business to increase its share prices too, as financiers are willing to invest more in business with substantial R&D spending and increase in the total worth of the business.
Action and implementation Strategy
Technique can be carried out successfully by establishing particular short term as well as long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Horizon Insurance Agency need to carry out numerous 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 create most of its profits.
• Evaluate the present target audience along with the market sector which is not include in the business's circle.
• Analyze the existing financial information to measure the amount that needs to be spent on the R&D and acquisitions.
• Examine the potential financiers and their nature, i.e. do they desire long term benefits (capital gain), or the desire early revenues (dividend). It would let the business to understand that just how much quantity must be invested in R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the company has prospective experience to handle. Get most favorable organizations with a strong dedication to health, to construct the client's understandings in the ideal direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Horizon Insurance Agency values and vision and to avoid prospective risk of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health in addition to taste factor, as the base for the Horizon Insurance Agency as a business producing healthy products has actually been constructed under midterm plan and now the business might move towards taste element as well to grasp the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to construct new items.
