With the deep analysis of the above options, it is recommended that the business ought to pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the business to not only introduce new and innovative products in the market it would also reduce the high expenditures on R&D under alternative 2 and increase the profit margins. It would allow the company to increase its share rates as well, as investors want to invest more in companies with substantial R&D costs and boost in the total worth of the business.
Action and implementation Strategy
Strategy can be implemented efficiently by developing particular short-term as well as long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Proximity Designs ought to carry out various activities to implement its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brand names, which generate most of its earnings.
• Evaluate the current target audience along with the marketplace section which is not consist of in the company's circle.
• Examine the existing financial data to determine the quantity that should be invested in the R&D and acquisitions.
• Examine the prospective financiers and their nature, i.e. do they desire long term advantages (capital gain), or the want early earnings (dividend). It would let the company to understand that how much amount ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the company has prospective experience to handle. Get most beneficial companies with a strong dedication to health, to develop the consumer's understandings in the best direction.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Proximity Designs worths and vision and to prevent potential threat of sunk expense.
Long Term Plan (1-10 years)
• Get companies with health as well as taste aspect, as the base for the Proximity Designs as a business producing healthy items has been developed under midterm strategy and now the company might move towards taste aspect as well 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 build brand-new products.
