With the deep analysis of the above options, it is recommended that the company ought to pick the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would enable the company to not just introduce new and ingenious items in the market it would likewise minimize the high expenses on R&D under alternative 2 and increase the earnings margins. It would enable the business to increase its share prices as well, as financiers are willing to invest more in companies with significant R&D spending and increase in the overall worth of the business.
Action and implementation Strategy
Method can be carried out effectively by developing certain short-term in addition to long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Petrochina should perform numerous activities to implement its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brand names, which create most of its revenue.
• Analyze the current target audience as well as the marketplace segment which is not include in the company's circle.
• Evaluate the existing financial information to measure the amount that must be invested in the R&D and acquisitions.
• Analyze the possible investors and their nature, i.e. do they desire long term benefits (capital gain), or the desire early profits (dividend). It would let the business to understand that how much amount must be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the business has potential experience to deal with. Acquire most favorable companies with a strong dedication to health, to develop the customer's understandings in the best direction.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Petrochina worths and vision and to avoid possible threat of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health in addition to taste aspect, as the base for the Petrochina as a company producing healthy products has actually been developed under midterm strategy and now the business might move towards taste aspect also to grasp 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 new products.
