With the deep analysis of the above options, it is recommended that the company should choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would make it possible for the company to not only present new and innovative products in the market it would likewise decrease the high expenses on R&D under alternative 2 and increase the revenue margins. It would allow the business to increase its share prices also, as investors want to invest more in companies with significant R&D costs and increase in the overall worth of the company.
Action and implementation Strategy
Strategy can be executed successfully by developing specific short-term in addition to long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Microsoft Xbox Division should carry out different activities to implement its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brands, which create most of its earnings.
• Evaluate the present target audience in addition to the marketplace section which is not consist of in the company's circle.
• Evaluate the existing financial information to measure the amount that ought to be invested in the R&D and acquisitions.
• Examine the potential investors and their nature, i.e. do they desire long term advantages (capital gain), or the want early revenues (dividend). It would let the company to understand that how much amount must be invested in R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the company has prospective experience to handle. Obtain most beneficial organizations with a strong dedication to health, to develop the customer's perceptions in the right instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Microsoft Xbox Division worths and vision and to prevent potential danger of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health along with taste factor, as the base for the Microsoft Xbox Division as a company producing healthy products has been built under midterm plan and now the company could move towards taste element as well 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 considerable time to build brand-new items.
