With the deep analysis of the above alternatives, it is advised that the business should pick the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would make it possible for the company to not just present new and ingenious items in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the profit margins. It would enable the company to increase its share prices as well, as financiers are willing to invest more in business with considerable R&D costs and boost in the overall worth of the business.
Action and implementation Strategy
Method can be carried out 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 Lifeline Systems Inc A must carry out numerous activities to implement its NHW method effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brand names, which create most of its profits.
• Evaluate the existing target audience as well as the market sector which is not consist of in the business's circle.
• Evaluate the existing financial information to measure the amount that should be invested in the R&D and acquisitions.
• Examine the potential investors and their nature, i.e. do they want long term benefits (capital gain), or the desire early revenues (dividend). It would let the business to understand that just how much quantity must be invested in R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the business has prospective experience to deal with. Acquire most favorable companies with a strong commitment to health, to build the customer's perceptions in the best direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Lifeline Systems Inc A worths and vision and to prevent possible risk of sunk expense.
Long Term Plan (1-10 years)
• Acquire organizations with health in addition to taste factor, as the base for the Lifeline Systems Inc A as a company producing healthy products has actually been developed under midterm strategy and now the business might move towards taste aspect also to understand the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to build brand-new items.
