With the deep analysis of the above alternatives, it is suggested that the company must select the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would enable the company to not only introduce brand-new and innovative items in the market it would also lower the high expenses on R&D under alternative 2 and increase the revenue margins. It would enable the business to increase its share prices too, as investors are willing to invest more in companies with significant R&D spending and increase in the total worth of the company.
Action and implementation Strategy
Strategy can be implemented successfully by establishing certain 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 Relayhealth should perform numerous activities to execute its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brand names, which produce the majority of its earnings.
• Analyze the current target market in addition to the market sector which is not consist of in the business's circle.
• Examine the existing financial data to determine the amount that needs to be spent on the R&D and acquisitions.
• Examine the prospective investors and their nature, i.e. do they want long term benefits (capital gain), or the want early profits (dividend). It would let the business to understand that just how much quantity should be invested in R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the company has possible experience to deal with. Get most favorable companies with a strong dedication to health, to construct 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 Relayhealth worths and vision and to avoid potential threat of sunk cost.
Long Term Plan (1-10 years)
• Acquire organizations with health along with taste factor, as the base for the Relayhealth as a business producing healthy products has actually been constructed under midterm strategy and now the company might move towards taste factor too to grasp the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to develop brand-new products.
