With the deep analysis of the above options, it is suggested that the company must choose 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 only introduce brand-new and innovative products in the market it would likewise lower the high expenditures on R&D under alternative 2 and increase the earnings margins. It would make it possible for the business to increase its share rates also, as financiers want to invest more in business with considerable R&D spending and boost in the total worth of the business.
Action and implementation Strategy
Method can be executed successfully by establishing specific short-term along with long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Loblaw Companies Limited Acquiring Shoppers Drug Mart should carry out different activities to execute its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brands, which produce the majority of its income.
• Examine the existing target market as well as the market sector which is not consist of in the business's circle.
• Examine the present financial data to determine the amount that must be spent on the R&D and acquisitions.
• Evaluate the potential investors and their nature, i.e. do they want long term benefits (capital gain), or the desire early earnings (dividend). It would let the company to know that just how much quantity needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the business has potential experience to deal with. Acquire most beneficial companies with a strong dedication to health, to develop the consumer's perceptions in the right direction.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Loblaw Companies Limited Acquiring Shoppers Drug Mart worths and vision and to prevent prospective risk of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health as well as taste factor, as the base for the Loblaw Companies Limited Acquiring Shoppers Drug Mart as a company producing healthy items has been built under midterm plan and now the business could move towards taste aspect as well to grasp the customers, 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.
