With the deep analysis of the above alternatives, it is suggested that the business should choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the business to not just present new and innovative items in the market it would likewise minimize the high expenditures on R&D under alternative 2 and increase the profit 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 costs and boost in the overall worth of the business.
Action and implementation Strategy
Technique can be carried out efficiently by establishing specific short term as well as long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Longtop Financial Technologies A must carry out various activities to execute its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brand names, which create the majority of its revenue.
• Evaluate the present target audience as well as the market segment which is not consist of in the business's circle.
• Examine the current financial data to measure the amount that ought to be invested in the R&D and acquisitions.
• Analyze the prospective investors and their nature, i.e. do they want long term advantages (capital gain), or the desire early profits (dividend). It would let the company to understand that just how much amount ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has prospective experience to handle. Acquire most beneficial companies with a strong dedication to health, to build the consumer's understandings in the ideal direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Longtop Financial Technologies A values and vision and to prevent potential risk of sunk expense.
Long Term Plan (1-10 years)
• Acquire organizations with health in addition to taste aspect, as the base for the Longtop Financial Technologies A as a company producing healthy products has been built under midterm strategy and now the business could move towards taste factor as well to grasp the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to build new products.
