With the deep analysis of the above options, it is suggested that the company ought to pick the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the company to not only present new and ingenious items in the market it would also minimize the high expenditures on R&D under alternative 2 and increase the profit margins. It would make it possible for the business to increase its share costs too, as investors are willing to invest more in companies with substantial R&D costs and boost in the total worth of the business.
Action and implementation Strategy
Technique can be implemented efficiently by establishing certain short term along with long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Nalli Silk Sarees A should perform various activities to execute its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brand names, which generate most of its revenue.
• Evaluate the current target audience in addition to the marketplace sector which is not consist of in the business's circle.
• Examine the existing financial information to measure the amount that ought to be spent on the R&D and acquisitions.
• Evaluate the potential investors and their nature, i.e. do they want long term benefits (capital gain), or the desire early earnings (dividend). It would let the company to understand that how much quantity should be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has prospective experience to handle. Obtain most beneficial organizations with a strong dedication to health, to build the customer's understandings in the right direction.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Nalli Silk Sarees A values and vision and to prevent prospective risk of sunk cost.
Long Term Plan (1-10 years)
• Get companies with health as well as taste element, as the base for the Nalli Silk Sarees A as a company producing healthy items has been developed under midterm strategy and now the business could move towards taste aspect also 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 significant time to build brand-new items.
