With the deep analysis of the above options, it is suggested that the company should pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the business to not just present 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 allow the business to increase its share rates too, as financiers are willing to invest more in business with significant R&D costs and increase in the total worth of the company.
Action and implementation Strategy
Strategy can be executed effectively by establishing specific short term in addition to long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Loccitane En Provence need to perform various activities to implement its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brand names, which produce the majority of its earnings.
• Analyze the current target market along with the marketplace segment which is not include in the company's circle.
• Analyze the current financial data to measure the amount that should be spent on the R&D and acquisitions.
• Evaluate the possible investors and their nature, i.e. do they want long term benefits (capital gain), or the desire early profits (dividend). It would let the business to understand that how much amount should be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the business has possible experience to handle. Acquire most beneficial organizations with a strong commitment to health, to construct the customer's perceptions in the best instructions.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Loccitane En Provence values and vision and to prevent prospective risk of sunk expense.
Long Term Plan (1-10 years)
• Acquire organizations with health along with taste element, as the base for the Loccitane En Provence as a company producing healthy items has been developed under midterm strategy and now the business could move towards taste factor as well 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 considerable time to construct brand-new products.
