With the deep analysis of the above alternatives, it is recommended that the business ought to pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the company to not only introduce new and ingenious products 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 prices as well, as investors are willing to invest more in business with significant R&D spending and boost in the total worth of the company.
Action and implementation Strategy
Strategy can be executed effectively by establishing certain short-term along with long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Market Integration And Portfolio Strategy should carry out different activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brand names, which produce most of its income.
• Examine the present target audience in addition to the marketplace segment which is not consist of in the company's circle.
• Analyze the existing financial data to determine the quantity that should be invested in the R&D and acquisitions.
• Examine the potential financiers and their nature, i.e. do they desire long term advantages (capital gain), or the desire early earnings (dividend). It would let the company to know that just how much amount needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the business has potential experience to deal with. Obtain most favorable organizations with a strong commitment to health, to develop the consumer's perceptions in the right direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Market Integration And Portfolio Strategy values and vision and to prevent possible danger of sunk expense.
Long Term Plan (1-10 years)
• Acquire organizations with health along with taste element, as the base for the Market Integration And Portfolio Strategy as a company producing healthy products has been built under midterm plan and now the company might move towards taste element as well to comprehend the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to build new items.
