With the deep analysis of the above options, it is suggested that the company ought to pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the business to not just introduce new and ingenious items in the market it would also minimize the high expenditures on R&D under alternative 2 and increase the earnings margins. It would enable the business to increase its share prices as well, as investors want to invest more in companies with considerable R&D spending and boost in the overall worth of the company.
Action and implementation Strategy
Method can be carried out efficiently by establishing certain short-term in addition to long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Korea Stock Exchange Video must carry out numerous activities to execute its NHW strategy 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 create most of its revenue.
• Examine the existing target audience along with the marketplace section which is not consist of in the company's circle.
• Examine the existing financial data to measure the amount that should be invested in the R&D and acquisitions.
• Examine the potential financiers and their nature, i.e. do they want long term advantages (capital gain), or the desire early earnings (dividend). It would let the business to know that how much amount ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has prospective experience to deal with. Acquire most beneficial companies with a strong dedication to health, to construct the customer's understandings in the right direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Korea Stock Exchange Video values and vision and to prevent possible danger of sunk expense.
Long Term Plan (1-10 years)
• Get companies with health as well as taste factor, as the base for the Korea Stock Exchange Video as a business producing healthy items has actually been constructed under midterm plan and now the business could move towards taste aspect too to grasp the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to develop new products.
