With the deep analysis of the above options, it is suggested that the company needs to select the alternative 3 in order to preserve 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 also decrease the high expenditures on R&D under alternative 2 and increase the profit margins. It would enable the business to increase its share prices also, as investors want to invest more in business with considerable R&D costs and boost in the total worth of the business.
Action and implementation Strategy
Technique can be implemented efficiently by establishing certain short-term along with long term strategies. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Lisas Waterbed Emporium Inc ought to carry out numerous activities to execute its NHW technique efficiently. 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 earnings.
• Examine the present target audience along with the marketplace segment which is not consist of in the company's circle.
• Examine the existing financial data to determine the amount that should be spent on the R&D and acquisitions.
• Evaluate the prospective investors and their nature, i.e. do they desire long term benefits (capital gain), or the desire early earnings (dividend). It would let the company to understand that just how much quantity should be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the business has prospective experience to handle. Get most beneficial organizations with a strong commitment to health, to develop the customer's understandings in the ideal instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Lisas Waterbed Emporium Inc worths and vision and to prevent potential risk of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health as well as taste factor, as the base for the Lisas Waterbed Emporium Inc as a business producing healthy items has been constructed under midterm plan and now the company might 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 significant time to develop new items.
