With the deep analysis of the above alternatives, it is recommended that the business should select the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the business to not only introduce brand-new and ingenious products in the market it would likewise minimize the high expenses on R&D under alternative 2 and increase the revenue margins. It would enable the business to increase its share prices as well, as financiers are willing to invest more in companies with considerable R&D costs and boost in the overall worth of the business.
Action and implementation Strategy
Strategy can be executed efficiently by establishing certain short-term along with long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Nantero should carry out different 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 the majority of its revenue.
• Examine the existing target market in addition to the market section which is not consist of in the business's circle.
• Examine the current financial information to determine the amount that needs to be invested in the R&D and acquisitions.
• Analyze the potential financiers and their nature, i.e. do they want long term benefits (capital gain), or the want early profits (dividend). It would let the company to understand that how much quantity ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the company has possible experience to deal with. Acquire most beneficial organizations with a strong commitment to health, to build the consumer's understandings in the ideal instructions.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Nantero values and vision and to avoid prospective risk of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health in addition to taste aspect, as the base for the Nantero as a business producing healthy products has been built under midterm plan and now the company might move towards taste aspect too to understand the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to build brand-new items.
