With the deep analysis of the above options, it is suggested that the company should select the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would enable the business to not only introduce brand-new and innovative items in the market it would also minimize the high expenditures on R&D under alternative 2 and increase the profit margins. It would make it possible for the company to increase its share prices too, as investors want to invest more in business with substantial R&D costs and increase in the overall worth of the company.
Action and implementation Strategy
Method can be carried out efficiently by developing particular short-term as well as long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Lifeline Systems Inc B need to 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 income.
• Analyze the present target market in addition to the marketplace sector which is not include in the company's circle.
• Evaluate the existing financial data to measure the quantity that needs to be spent on the R&D and acquisitions.
• Examine the prospective investors and their nature, i.e. do they want long term advantages (capital gain), or the desire early revenues (dividend). It would let the company to know that how much amount should be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has possible experience to handle. Obtain most beneficial companies with a strong commitment to health, to build the consumer's understandings in the right instructions.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Lifeline Systems Inc B worths and vision and to avoid possible threat of sunk expense.
Long Term Plan (1-10 years)
• Acquire organizations with health along with taste element, as the base for the Lifeline Systems Inc B as a company producing healthy products has actually been developed under midterm plan and now the company might move towards taste element too to comprehend 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 develop new products.
