With the deep analysis of the above alternatives, it is recommended that the business should select 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 only introduce brand-new and innovative products in the market it would also 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 costs as well, as financiers want to invest more in companies with significant R&D spending and increase in the total worth of the business.
Action and implementation Strategy
Strategy can be carried out successfully by establishing particular 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 Motor City A Disruptive Business Model B need to perform various activities to execute its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brands, which create the majority of its income.
• Examine the present target audience along with the marketplace section which is not include in the business's circle.
• Examine the existing financial data to measure the amount that should be invested in the R&D and acquisitions.
• Examine the possible financiers and their nature, i.e. do they desire long term advantages (capital gain), or the want early earnings (dividend). It would let the business to understand that how much amount 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. Acquire most favorable organizations with a strong dedication to health, to develop the client's perceptions in the right direction.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Motor City A Disruptive Business Model B values and vision and to avoid potential risk of sunk cost.
Long Term Plan (1-10 years)
• Get organizations with health in addition to taste aspect, as the base for the Motor City A Disruptive Business Model B as a business producing healthy products has been constructed under midterm plan and now the business might move towards taste aspect as well to grasp the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to construct brand-new products.
