With the deep analysis of the above options, it is advised that the business should select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would make it possible for the company to not just introduce new and innovative items 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 also, as financiers are willing to invest more in business with substantial R&D costs and increase in the overall worth of the business.
Action and implementation Strategy
Strategy can be carried out effectively by establishing certain short-term along with long term strategies. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Nasscom must carry out various activities to implement its NHW method effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brands, which generate most of its revenue.
• Examine the current target audience in addition to the market segment which is not consist of in the business's circle.
• Evaluate the current financial data to determine the quantity that must be invested in the R&D and acquisitions.
• Examine the prospective financiers and their nature, i.e. do they want long term benefits (capital gain), or the want early revenues (dividend). It would let the company to understand that just how much quantity must be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the business has potential experience to handle. Acquire most favorable organizations with a strong commitment to health, to develop the consumer's perceptions in the right direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Nasscom worths and vision and to prevent prospective risk of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health as well as taste aspect, as the base for the Nasscom as a business producing healthy products has been developed under midterm plan and now the company might move towards taste element too 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 substantial time to construct new products.
