With the deep analysis of the above options, it is recommended that the company should select the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would allow the business to not just introduce new and ingenious items in the market it would likewise reduce the high expenditures on R&D under alternative 2 and increase the profit margins. It would enable the company to increase its share rates also, as financiers are willing to invest more in companies with significant R&D costs and increase in the total worth of the company.
Action and implementation Strategy
Strategy can be executed successfully by establishing certain short term in addition to long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Hotmail should perform different activities to implement its NHW method effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brands, which create most of its income.
• Examine the present target market as well as the marketplace sector which is not include in the business's circle.
• Evaluate the present financial information to measure the amount that needs to be spent on the R&D and acquisitions.
• Examine the possible financiers and their nature, i.e. do they desire long term benefits (capital gain), or the desire early profits (dividend). It would let the company to understand that just how much amount should be spent on R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the business has potential experience to deal with. Obtain most beneficial companies with a strong dedication to health, to build the client's perceptions in the best direction.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Hotmail worths and vision and to avoid prospective risk of sunk expense.
Long Term Plan (1-10 years)
• Get organizations with health in addition to taste aspect, as the base for the Hotmail as a company producing healthy items has been built under midterm strategy and now the business might move towards taste element also to comprehend the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to construct new products.
