With the deep analysis of the above alternatives, it is advised that the business must choose the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would allow the business to not just present brand-new and innovative products in the market it would also decrease the high expenses on R&D under alternative 2 and increase the profit margins. It would allow the business to increase its share costs too, as financiers want to invest more in business with substantial R&D spending and increase in the overall worth of the business.
Action and implementation Strategy
Technique can be implemented effectively by establishing certain short-term as well as long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Psi Social Marketing Clean Water must perform numerous 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 generate the majority of its revenue.
• Evaluate the present target audience as well as the market section which is not consist of in the company's circle.
• Evaluate the existing financial data to measure the quantity that should be spent on the R&D and acquisitions.
• Examine the potential financiers and their nature, i.e. do they want long term advantages (capital gain), or the want early profits (dividend). It would let the business to know that how much amount ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the company has possible experience to deal with. Acquire most favorable companies with a strong dedication to health, to build the consumer's understandings in the right direction.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Psi Social Marketing Clean Water values and vision and to prevent prospective threat of sunk expense.
Long Term Plan (1-10 years)
• Acquire organizations with health as well as taste element, as the base for the Psi Social Marketing Clean Water as a business producing healthy items has actually been constructed under midterm strategy and now the business could move towards taste element also to comprehend the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to construct brand-new items.
