With the deep analysis of the above options, it is recommended that the company should pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the business to not just present brand-new and innovative products in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the revenue margins. It would allow the business to increase its share prices as well, as financiers want to invest more in business with considerable R&D costs and boost in the overall worth of the company.
Action and implementation Strategy
Strategy can be implemented efficiently by establishing specific short term along with long term plans. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Kanthal B ought to perform numerous activities to execute its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brands, which generate most of its revenue.
• Analyze the existing target audience along with the market sector which is not consist of in the business's circle.
• Evaluate the current financial information to determine the amount that ought to be invested in the R&D and acquisitions.
• Evaluate the possible investors and their nature, i.e. do they desire long term advantages (capital gain), or the desire early revenues (dividend). It would let the company to know that how much amount must be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the company has prospective experience to handle. Obtain most favorable companies 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 consumer's mind about Kanthal B values and vision and to prevent potential danger of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health in addition to taste aspect, as the base for the Kanthal B as a company producing healthy items has actually been developed under midterm strategy and now the business could move towards taste aspect too 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 substantial time to develop new products.
