With the deep analysis of the above alternatives, it is suggested that the company ought to select the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the company to not only introduce new and innovative products in the market it would also decrease the high expenses on R&D under alternative 2 and increase the earnings margins. It would enable the company to increase its share rates too, as investors want to invest more in business with substantial R&D spending and boost in the total worth of the business.
Action and implementation Strategy
Method can be implemented successfully by developing specific short-term in addition to long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Hotel Industry should perform different activities to execute its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brands, which produce most of its profits.
• Evaluate the present target audience as well as the marketplace segment which is not include in the company's circle.
• Examine the present financial information to determine the amount that should be spent on the R&D and acquisitions.
• Evaluate the potential financiers and their nature, i.e. do they desire long term benefits (capital gain), or the desire early profits (dividend). It would let the business to know that just how much quantity should be invested in R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the business has possible experience to handle. Acquire most beneficial organizations with a strong commitment to health, to construct the customer's perceptions in the right direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Hotel Industry worths and vision and to prevent possible danger of sunk cost.
Long Term Plan (1-10 years)
• Acquire organizations with health along with taste factor, as the base for the Hotel Industry as a company producing healthy items has actually been developed under midterm strategy and now the company 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 substantial time to build brand-new items.
