With the deep analysis of the above alternatives, it is suggested that the business needs to pick the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the business to not only introduce new and innovative items in the market it would also lower the high expenditures on R&D under alternative 2 and increase the earnings margins. It would allow the business to increase its share costs also, as investors want to invest more in business with significant R&D spending and boost in the overall worth of the company.
Action and implementation Strategy
Strategy can be executed successfully by establishing specific short term along with long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Kaiser Permanente Innovating To Transform Healthcare should perform different activities to implement its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brand names, which generate most of its profits.
• Analyze the present target audience in addition to the market sector which is not include in the business's circle.
• Analyze the current financial data to determine the quantity that needs to be spent on the R&D and acquisitions.
• Evaluate the possible financiers and their nature, i.e. do they desire long term advantages (capital gain), or the desire early revenues (dividend). It would let the business to know that how much quantity should be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the company has potential experience to deal with. Get most beneficial organizations with a strong dedication to health, to build the client's perceptions in the right instructions.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Kaiser Permanente Innovating To Transform Healthcare values and vision and to avoid possible risk of sunk expense.
Long Term Plan (1-10 years)
• Obtain organizations with health as well as taste aspect, as the base for the Kaiser Permanente Innovating To Transform Healthcare as a business producing healthy products has been developed under midterm strategy and now the business might move towards taste aspect too to grasp the customers, 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 brand-new items.
