With the deep analysis of the above options, it is advised that the business must select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the company to not only introduce brand-new and innovative products 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 prices also, as investors are willing to invest more in companies with significant R&D costs and boost in the total worth of the company.
Action and implementation Strategy
Technique can be carried out efficiently by establishing certain short-term in addition to long term plans. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Pidilite Industries Assessing Credit Quality should carry out different activities to execute 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 brand names, which create the majority of its revenue.
• Analyze the present target audience along with the marketplace section which is not consist of in the company's circle.
• Examine the current financial data to determine the amount that should be spent on the R&D and acquisitions.
• Evaluate the potential investors and their nature, i.e. do they desire long term advantages (capital gain), or the desire early earnings (dividend). It would let the business to know that just how much quantity must be invested in R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the business has potential experience to deal with. Get most favorable organizations with a strong commitment to health, to develop the client's understandings in the ideal direction.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Pidilite Industries Assessing Credit Quality values and vision and to avoid potential threat of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health in addition to taste element, as the base for the Pidilite Industries Assessing Credit Quality as a business producing healthy products has actually been developed under midterm strategy and now the company could move towards taste element too 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 considerable time to construct new items.
