With the deep analysis of the above options, it is recommended that the company must select 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 just present new and ingenious items in the market it would also reduce the high expenses on R&D under alternative 2 and increase the profit margins. It would enable the company to increase its share rates as well, as investors are willing to invest more in business with substantial R&D costs and increase in the overall worth of the company.
Action and implementation Strategy
Method can be executed efficiently by establishing particular short term as well as long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Merlins Magic Mansion should carry out numerous activities to execute its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brands, which create most of its profits.
• Examine the existing target market in addition to the marketplace section which is not include in the company's circle.
• Evaluate the present financial data to measure the quantity that ought to be spent on the R&D and acquisitions.
• Analyze the prospective investors and their nature, i.e. do they want long term advantages (capital gain), or the want early revenues (dividend). It would let the business to understand that how much amount must be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has possible experience to handle. Acquire most favorable companies with a strong commitment to health, to build the customer's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Merlins Magic Mansion values and vision and to avoid potential risk of sunk expense.
Long Term Plan (1-10 years)
• Obtain organizations with health in addition to taste element, as the base for the Merlins Magic Mansion as a company producing healthy products has actually been developed under midterm strategy and now the business might move towards taste element as well to grasp the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to develop new items.
