With the deep analysis of the above alternatives, it is advised that the business ought to pick 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 products in the market it would also reduce the high expenditures on R&D under alternative 2 and increase the profit margins. It would enable the business to increase its share costs also, as investors want to invest more in companies with considerable R&D costs and increase in the total worth of the company.
Action and implementation Strategy
Strategy can be implemented efficiently by developing specific short term as well as long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Ritz Carlton Hotels must perform different activities to execute its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brand names, which produce most of its income.
• Analyze the existing target market as well as the market segment which is not include in the company's circle.
• Evaluate the existing financial data to measure the quantity that must be spent on the R&D and acquisitions.
• Analyze the potential investors and their nature, i.e. do they desire long term benefits (capital gain), or the want early profits (dividend). It would let the business to understand that how much quantity should be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has prospective experience to handle. Acquire most beneficial companies with a strong commitment to health, to construct the client's understandings in the ideal instructions.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Ritz Carlton Hotels values and vision and to prevent potential risk of sunk expense.
Long Term Plan (1-10 years)
• Acquire organizations with health along with taste element, as the base for the Ritz Carlton Hotels as a business producing healthy items has been developed under midterm strategy and now the company might move towards taste aspect as well to comprehend 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.
