With the deep analysis of the above options, it is recommended that the business must 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 only introduce brand-new and innovative products in the market it would likewise lower the high expenses on R&D under alternative 2 and increase the earnings margins. It would enable the company to increase its share prices too, as financiers want to invest more in companies with considerable R&D costs and increase in the overall worth of the business.
Action and implementation Strategy
Method 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 strategy Openideo ought to perform numerous activities to execute its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brands, which generate most of its revenue.
• Evaluate the present target market as well as the market section which is not include in the company's circle.
• Evaluate the existing financial data to determine the quantity that needs to be invested in the R&D and acquisitions.
• Examine the prospective investors and their nature, i.e. do they desire long term advantages (capital gain), or the desire early profits (dividend). It would let the company to know that how much amount ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the company has possible experience to deal with. Get most beneficial organizations with a strong commitment to health, to build the consumer's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Openideo values and vision and to prevent prospective threat of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health along with taste factor, as the base for the Openideo as a business producing healthy products has actually been constructed under midterm plan and now the business could move towards taste element also 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 develop brand-new products.
