With the deep analysis of the above alternatives, it is recommended that the company must pick the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would make it possible for the company to not just present new and innovative items in the market it would likewise reduce 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 investors want to invest more in business with significant R&D costs and increase in the total worth of the company.
Action and implementation Strategy
Technique can be implemented successfully by developing specific short term as well as long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Knight Importers should perform numerous activities to execute its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brands, which create most of its profits.
• Examine the existing target market along with the market section which is not include in the business's circle.
• Analyze the current financial data to determine the quantity that should be invested in the R&D and acquisitions.
• Examine the potential investors and their nature, i.e. do they desire long term advantages (capital gain), or the desire early earnings (dividend). It would let the company to understand that how much quantity must be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the business has possible experience to deal with. Obtain most favorable companies with a strong dedication to health, to construct the client's perceptions in the right direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Knight Importers worths and vision and to prevent possible danger of sunk expense.
Long Term Plan (1-10 years)
• Get organizations with health along with taste aspect, as the base for the Knight Importers as a company producing healthy items has been built under midterm plan and now the business could move towards taste aspect as well 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 substantial time to build new items.
