With the deep analysis of the above alternatives, it is suggested that the business should choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the company to not just present new and ingenious 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 prices as well, as investors want to invest more in business with considerable R&D costs and boost in the overall worth of the company.
Action and implementation Strategy
Technique can be carried out successfully by establishing certain short term along with long term strategies. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Richmond Engineering In China ought to carry out 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 produce the majority of its revenue.
• Evaluate the present target market along with the market section which is not include in the business's circle.
• Evaluate the present financial data to determine the quantity that must be invested in the R&D and acquisitions.
• Analyze the prospective financiers and their nature, i.e. do they want long term benefits (capital gain), or the desire 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 companies in which the company has possible experience to deal with. Acquire most beneficial organizations with a strong commitment to health, to build the consumer's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Richmond Engineering In China values and vision and to prevent prospective threat of sunk cost.
Long Term Plan (1-10 years)
• Get organizations with health in addition to taste aspect, as the base for the Richmond Engineering In China as a business producing healthy items has actually been built under midterm strategy and now the company could move towards taste element as well 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 considerable time to build brand-new items.
