With the deep analysis of the above alternatives, it is recommended that the company must choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the company to not only introduce new and ingenious products in the market it would also lower the high expenditures on R&D under alternative 2 and increase the revenue margins. It would allow the business to increase its share costs too, as financiers are willing to invest more in companies with substantial R&D spending and boost in the overall worth of the business.
Action and implementation Strategy
Method can be executed effectively by establishing certain short-term as well as long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Prime Micro Inc should carry out different activities to execute its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brands, which produce the majority of its revenue.
• Evaluate the existing target audience along with the market section which is not include in the company's circle.
• Evaluate the present financial data to determine the amount that should be invested in the R&D and acquisitions.
• Examine the potential financiers and their nature, i.e. do they want long term benefits (capital gain), or the desire early profits (dividend). It would let the business to know that just how much amount needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the company has potential experience to deal with. Acquire most beneficial organizations with a strong dedication to health, to develop the customer's understandings in the right direction.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Prime Micro Inc values and vision and to prevent potential threat of sunk expense.
Long Term Plan (1-10 years)
• Obtain companies with health in addition to taste element, as the base for the Prime Micro Inc as a company producing healthy items has been developed under midterm strategy and now the company might move towards taste aspect as well 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 considerable time to construct brand-new products.
