With the deep analysis of the above options, it is advised that the company needs to select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the business to not only introduce brand-new and ingenious items in the market it would also lower the high expenditures on R&D under alternative 2 and increase the revenue margins. It would make it possible for the business to increase its share prices too, as investors want to invest more in business with substantial R&D costs and increase in the overall worth of the business.
Action and implementation Strategy
Strategy can be implemented effectively by establishing certain 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 Renewable Energy Co ought to perform different activities to execute its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brand names, which create most of its revenue.
• Evaluate the current target market along with the market segment which is not include in the company's circle.
• Examine the current financial information to measure the amount that ought to be spent on the R&D and acquisitions.
• Evaluate the possible investors and their nature, i.e. do they desire long term advantages (capital gain), or the desire early earnings (dividend). It would let the business to understand that how much amount must be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has potential experience to deal with. Acquire most favorable companies with a strong commitment to health, to develop the customer's understandings in the right instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Renewable Energy Co worths and vision and to avoid possible danger of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health along with taste aspect, as the base for the Renewable Energy Co as a company producing healthy products has actually been developed under midterm plan and now the company might move towards taste factor also 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 substantial time to construct brand-new items.
