With the deep analysis of the above options, it is suggested that the business ought to choose the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would enable the company to not just introduce new and ingenious items in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the profit margins. It would make it possible for the company to increase its share prices as well, as investors are willing to invest more in companies with considerable R&D costs and increase in the overall worth of the business.
Action and implementation Strategy
Technique can be executed successfully by establishing particular short-term in addition to long term plans. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Messer Griesheim A should perform different activities to implement its NHW method effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brand names, which generate the majority of its income.
• Analyze the current target audience in addition to the market segment which is not include in the company's circle.
• Analyze the current financial data to measure the amount that should be invested in the R&D and acquisitions.
• Analyze the prospective financiers and their nature, i.e. do they desire long term advantages (capital gain), or the want early revenues (dividend). It would let the business to know that just how much quantity needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the business has possible experience to handle. Obtain most beneficial companies with a strong dedication to health, to construct the client's understandings in the best direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Messer Griesheim A worths and vision and to avoid possible threat of sunk cost.
Long Term Plan (1-10 years)
• Acquire organizations with health along with taste element, as the base for the Messer Griesheim A as a business producing healthy items has been developed under midterm strategy and now the company might move towards taste element as well to comprehend 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 construct brand-new products.
