With the deep analysis of the above alternatives, it is suggested that the business 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 new and innovative products in the market it would likewise minimize the high expenditures on R&D under alternative 2 and increase the profit margins. It would enable the business to increase its share prices as well, as financiers are willing to invest more in business with significant R&D spending and increase in the total worth of the company.
Action and implementation Strategy
Method can be implemented successfully by developing certain short-term as well as long term strategies. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Ron De Venezuela must perform numerous activities to execute its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brand names, which create the majority of its revenue.
• Evaluate the existing target market along with the market segment which is not include in the business's circle.
• Analyze the existing financial data to determine the amount that needs to be invested in the R&D and acquisitions.
• Evaluate the prospective financiers and their nature, i.e. do they want long term advantages (capital gain), or the want early earnings (dividend). It would let the business to understand that how much quantity needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the business has possible experience to deal with. Get most favorable companies with a strong dedication to health, to build the client's understandings in the best instructions.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Ron De Venezuela 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 Ron De Venezuela as a company producing healthy items has actually been built under midterm plan and now the company could move towards taste element as well to comprehend 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 develop brand-new products.
