With the deep analysis of the above options, it is suggested that the company should pick the alternative 3 in order to maintain 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 likewise decrease the high expenditures on R&D under alternative 2 and increase the profit margins. It would allow the business to increase its share prices also, as investors want to invest more in business with substantial R&D costs and boost in the overall worth of the company.
Action and implementation Strategy
Technique can be executed efficiently by developing certain short-term in addition to long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Mumate must perform various activities to implement its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brands, which generate most of its profits.
• Evaluate the existing target market in addition to the market segment which is not include in the business's circle.
• Analyze the existing financial information to determine the quantity that ought to be spent on the R&D and acquisitions.
• Evaluate the potential financiers and their nature, i.e. do they want long term advantages (capital gain), or the desire early revenues (dividend). It would let the business to know that just how much amount needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has prospective experience to deal with. Get most beneficial organizations with a strong commitment to health, to build the consumer's perceptions in the best direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Mumate worths and vision and to prevent potential danger of sunk cost.
Long Term Plan (1-10 years)
• Acquire organizations with health in addition to taste aspect, as the base for the Mumate as a business producing healthy products has actually been constructed under midterm plan and now the business might move towards taste factor too to grasp 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 build new products.
