With the deep analysis of the above alternatives, it is suggested that the business ought to pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would make it possible for the business to not only present new and innovative items in the market it would also reduce the high expenditures on R&D under alternative 2 and increase the profit margins. It would make it possible for the company to increase its share costs too, as investors are willing to invest more in companies with substantial R&D spending and boost in the total worth of the company.
Action and implementation Strategy
Method can be implemented effectively by establishing particular short-term in addition to long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan New Songdo City Chinese Version ought to perform numerous activities to execute its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brand names, which produce the majority of its profits.
• Evaluate the current target market as well as the marketplace segment which is not include in the business's circle.
• Analyze the current financial information to measure the amount that needs to be spent on the R&D and acquisitions.
• Evaluate the possible financiers and their nature, i.e. do they want long term benefits (capital gain), or the want 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)
• Obtain those companies in which the business has potential experience to deal with. Get most beneficial companies with a strong dedication to health, to develop the customer's perceptions in the best instructions.
• Focus more on acquisitions than R&D to build the base in the customer's mind about New Songdo City Chinese Version worths and vision and to prevent potential threat of sunk expense.
Long Term Plan (1-10 years)
• Get organizations with health in addition to taste element, as the base for the New Songdo City Chinese Version as a company producing healthy products has actually been developed under midterm strategy and now the business might move towards taste element also to understand 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 build brand-new items.
