With the deep analysis of the above options, it is advised that the company needs to select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the company to not only present new and ingenious products in the market it would also reduce the high expenses on R&D under alternative 2 and increase the earnings margins. It would enable the business to increase its share costs too, as investors want to invest more in business with substantial R&D costs and increase in the overall worth of the company.
Action and implementation Strategy
Method can be implemented successfully by developing certain 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 Mobil Usmandr A1 should carry out numerous activities to implement its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brands, which produce most of its revenue.
• Examine the present target audience as well as the market segment which is not include in the business's circle.
• Examine the existing financial data to measure the amount that must be invested in the R&D and acquisitions.
• Evaluate 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 company to understand that just how much amount should be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the business has potential experience to handle. Obtain most beneficial companies with a strong commitment 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 Mobil Usmandr A1 worths and vision and to avoid possible threat of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health along with taste aspect, as the base for the Mobil Usmandr A1 as a business producing healthy products has been built under midterm strategy and now the business might move towards taste element also to grasp the customers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to construct new products.
