With the deep analysis of the above options, it is advised that the company should 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 just present new and innovative items in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the earnings margins. It would make it possible for the business to increase its share costs also, as investors want to invest more in business with considerable R&D costs and increase in the overall worth of the business.
Action and implementation Strategy
Method can be carried out successfully by developing specific short-term along with long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Precise Software must perform various activities to implement its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brands, which create the majority of its profits.
• Examine the current target market as well as the market segment which is not include in the business's circle.
• Evaluate the present financial information to determine the amount that ought to be invested in the R&D and acquisitions.
• Evaluate the potential financiers and their nature, i.e. do they desire long term benefits (capital gain), or the desire early revenues (dividend). It would let the business to understand that just how much amount must be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the business has possible experience to handle. Get most beneficial organizations with a strong dedication to health, to develop the customer's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Precise Software worths and vision and to avoid prospective threat of sunk cost.
Long Term Plan (1-10 years)
• Get companies with health along with taste factor, as the base for the Precise Software as a company producing healthy items has actually been built under midterm strategy and now the business could move towards taste aspect too to understand the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to construct new items.
