With the deep analysis of the above alternatives, it is suggested that the company should 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 business to not just introduce new and ingenious products in the market it would likewise decrease the high expenditures on R&D under alternative 2 and increase the profit margins. It would enable the business to increase its share prices as well, as investors want to invest more in business with significant R&D costs and boost in the total worth of the business.
Action and implementation Strategy
Strategy can be executed successfully by establishing particular short term along with long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Metabo Gmbh And Co Kg need to perform different activities to implement its NHW method effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brand names, which generate the majority of its revenue.
• Analyze the present target market as well as the marketplace section which is not include in the company's circle.
• Analyze the existing financial data to measure the amount that ought to be invested in the R&D and acquisitions.
• Examine the possible investors and their nature, i.e. do they want long term benefits (capital gain), or the want early profits (dividend). It would let the company to know that how much quantity ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the business has potential experience to handle. Get most favorable organizations with a strong commitment to health, to develop the consumer's understandings in the right instructions.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Metabo Gmbh And Co Kg worths and vision and to avoid prospective threat of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health along with taste aspect, as the base for the Metabo Gmbh And Co Kg as a business producing healthy products has actually been constructed under midterm strategy and now the business could move towards taste factor also to understand the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to build brand-new items.
