With the deep analysis of the above alternatives, it is advised that the company should 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 brand-new and innovative products in the market it would likewise decrease the high expenses on R&D under alternative 2 and increase the earnings margins. It would allow the company to increase its share costs also, as financiers are willing to invest more in companies with significant R&D costs and boost in the total worth of the business.
Action and implementation Strategy
Strategy can be carried out successfully by establishing particular short-term in addition to long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Red Star Furniture Group Co Ltd ought to carry out different activities to implement its NHW method effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brands, which produce most of its income.
• Evaluate the existing target audience along with the marketplace section which is not consist of in the company's circle.
• Analyze the existing financial data to measure the quantity that must be spent on the R&D and acquisitions.
• Evaluate the potential financiers and their nature, i.e. do they want long term benefits (capital gain), or the want early profits (dividend). It would let the company to understand that how much amount should be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the company has prospective experience to handle. Acquire most beneficial companies with a strong commitment to health, to construct the consumer's understandings in the right instructions.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Red Star Furniture Group Co Ltd worths and vision and to prevent possible risk of sunk expense.
Long Term Plan (1-10 years)
• Get organizations with health as well as taste factor, as the base for the Red Star Furniture Group Co Ltd as a company producing healthy items has actually been constructed under midterm strategy and now the company might move towards taste aspect also to understand the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to build new items.
