With the deep analysis of the above alternatives, it is advised that the company needs to pick the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the company to not just present new and innovative products in the market it would likewise minimize the high expenditures on R&D under alternative 2 and increase the revenue margins. It would make it possible for the business to increase its share costs too, as investors are willing to invest more in business with significant R&D costs and boost in the total worth of the company.
Action and implementation Strategy
Method can be implemented successfully by establishing certain short term along with long term strategies. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Kanthal A should carry out various activities to implement its NHW method effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brand names, which generate most of its revenue.
• Evaluate the current target audience in addition to the market sector which is not consist of in the company's circle.
• Evaluate the current financial data to measure the amount 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 business to know that just how much quantity should be spent on R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the company has potential experience to handle. Get most beneficial organizations with a strong commitment to health, to build the customer's perceptions in the ideal instructions.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Kanthal A worths and vision and to prevent potential threat of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste aspect, as the base for the Kanthal A as a business producing healthy products has been constructed under midterm plan and now the business could move towards taste aspect 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 considerable time to construct brand-new products.
