With the deep analysis of the above options, it is advised that the company must choose the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would allow the company to not only introduce new and ingenious products in the market it would also reduce the high expenditures on R&D under alternative 2 and increase the earnings margins. It would enable the company to increase its share rates too, as investors want to invest more in companies with significant R&D spending and increase in the total worth of the company.
Action and implementation Strategy
Method can be implemented effectively by developing particular short-term along with long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Loblaw And Shoppers Drug Mart ought to carry out various activities to execute its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brands, which produce most of its profits.
• Analyze the present target market along with the marketplace segment which is not consist of in the company's circle.
• Examine the present financial data to measure the quantity that needs to be spent on the R&D and acquisitions.
• Evaluate the prospective 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 understand that how much quantity needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the business has potential experience to handle. Get most beneficial companies with a strong commitment to health, to develop the client's understandings in the best instructions.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Loblaw And Shoppers Drug Mart values and vision and to prevent possible threat of sunk cost.
Long Term Plan (1-10 years)
• Get companies with health as well as taste element, as the base for the Loblaw And Shoppers Drug Mart as a company producing healthy items has been built under midterm strategy and now the company could move towards taste aspect also to comprehend the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to develop new items.
