With the deep analysis of the above options, it is recommended that the company needs to select the alternative 3 in order to maintain 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 items in the market it would likewise reduce the high expenditures on R&D under alternative 2 and increase the profit margins. It would enable the company to increase its share costs also, as investors want to invest more in business with substantial R&D spending 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 strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Patterson Vs Commissioner need to carry out numerous activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brand names, which produce most of its revenue.
• Analyze the existing target market in addition to the market section which is not include in the company's circle.
• Examine the present financial information to determine the amount that should be invested in the R&D and acquisitions.
• Examine the prospective financiers and their nature, i.e. do they want long term advantages (capital gain), or the want early revenues (dividend). It would let the business to know that how much amount must be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the business has prospective experience to deal with. Acquire most favorable organizations with a strong commitment to health, to build the customer's perceptions in the right direction.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Patterson Vs Commissioner worths and vision and to prevent possible risk of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health in addition to taste aspect, as the base for the Patterson Vs Commissioner as a company producing healthy products has actually been constructed under midterm strategy and now the company might move towards taste factor also to comprehend the customers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to construct brand-new items.
