With the deep analysis of the above options, it is advised that the company must choose the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the company to not just introduce brand-new and innovative products in the market it would also lower the high expenses on R&D under alternative 2 and increase the revenue margins. It would make it possible for the business to increase its share rates as well, as financiers want to invest more in business with significant R&D costs and increase in the overall worth of the business.
Action and implementation Strategy
Method can be carried out efficiently by establishing certain 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 Ikea In Saudi Arabia C must perform numerous activities to implement its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brand names, which generate the majority of its income.
• Evaluate the present target market as well as the market segment which is not include in the company's circle.
• Evaluate the current financial data to determine the quantity that should be invested in the R&D and acquisitions.
• Evaluate the possible investors and their nature, i.e. do they desire long term benefits (capital gain), or the desire early earnings (dividend). It would let the company to understand that just how much amount needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the company has possible experience to deal with. Acquire most favorable organizations with a strong dedication to health, to construct the consumer's understandings in the ideal direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Ikea In Saudi Arabia C worths and vision and to prevent potential threat of sunk expense.
Long Term Plan (1-10 years)
• Obtain companies with health as well as taste aspect, as the base for the Ikea In Saudi Arabia C as a business producing healthy items has been built under midterm strategy and now the business could move towards taste aspect as well to grasp 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 develop new products.
