With the deep analysis of the above options, it is suggested that the business must 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 also minimize the high expenses on R&D under alternative 2 and increase the profit margins. It would allow the business to increase its share prices too, as investors are willing to invest more in business with considerable R&D spending and boost in the total worth of the company.
Action and implementation Strategy
Strategy can be implemented 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 strategy Metro Cash And Carry Video need to perform numerous activities to implement its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brands, which generate the majority of its profits.
• Analyze the present target market in addition to the market sector which is not consist of in the company's circle.
• Examine the existing financial information to measure the quantity that should be spent on the R&D and acquisitions.
• Evaluate the prospective investors and their nature, i.e. do they desire long term benefits (capital gain), or the want early revenues (dividend). It would let the business to understand that how much amount needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the business has potential experience to handle. Obtain most beneficial organizations with a strong dedication to health, to develop the consumer's understandings in the best instructions.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Metro Cash And Carry Video worths and vision and to prevent prospective threat of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health along with taste factor, as the base for the Metro Cash And Carry Video as a business producing healthy products has actually been constructed under midterm strategy and now the company might move towards taste element too 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 significant time to construct new items.
