With the deep analysis of the above alternatives, it is suggested that the company must choose the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the company to not only introduce brand-new and innovative items in the market it would also reduce 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 as well, as investors are willing to invest more in business with significant R&D costs and increase in the total worth of the business.
Action and implementation Strategy
Method can be carried out efficiently by developing particular short-term along with long term strategies. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Ikea In Saudi Arabia A need to carry out various activities to execute its NHW strategy 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 earnings.
• Evaluate the existing target audience along with the market sector which is not consist of in the company's circle.
• Evaluate the present financial data to determine the quantity that ought to be spent on the R&D and acquisitions.
• Examine the possible investors and their nature, i.e. do they want long term advantages (capital gain), or the want early profits (dividend). It would let the company to know that how much quantity must be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has potential experience to deal with. Acquire most beneficial organizations with a strong commitment to health, to construct the customer's understandings in the ideal instructions.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Ikea In Saudi Arabia A values and vision and to prevent prospective threat of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste factor, as the base for the Ikea In Saudi Arabia A as a business producing healthy items has actually been constructed under midterm strategy and now the business could move towards taste element also to understand 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 build brand-new items.
