With the deep analysis of the above alternatives, it is advised that the company should choose the alternative 3 in order to maintain 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 lower the high expenses on R&D under alternative 2 and increase the profit margins. It would make it possible for the business to increase its share rates also, as financiers are willing to invest more in business with significant R&D spending and boost in the overall worth of the company.
Action and implementation Strategy
Method can be executed successfully by establishing particular short term as well as long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Mexico D Stabilization And Retrenchment should perform different activities to implement its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brands, which create most of its income.
• Analyze the existing target market as well as the market segment which is not consist of in the business's circle.
• Evaluate the current financial information to determine the quantity that must be spent on the R&D and acquisitions.
• Evaluate the prospective investors and their nature, i.e. do they want long term benefits (capital gain), or the desire early revenues (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. Get most favorable companies with a strong dedication to health, to develop the customer's perceptions in the ideal instructions.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Mexico D Stabilization And Retrenchment values and vision and to prevent potential threat of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste aspect, as the base for the Mexico D Stabilization And Retrenchment as a company producing healthy products has been constructed under midterm strategy and now the business might move towards taste aspect too to understand the consumers, 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 brand-new products.
