With the deep analysis of the above options, it is suggested that the company should choose the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would enable the company to not just introduce brand-new and ingenious items in the market it would also minimize the high expenses 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 substantial R&D costs and increase in the total worth of the company.
Action and implementation Strategy
Technique can be carried out effectively by developing particular 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 Route Potato Chips should carry out various activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brands, which generate the majority of its earnings.
• Examine the present target audience as well as the market segment which is not include in the business's circle.
• Examine the existing financial information to determine the amount that should be invested in the R&D and acquisitions.
• Examine the possible investors and their nature, i.e. do they desire long term advantages (capital gain), or the desire early revenues (dividend). It would let the business to understand that just how much quantity must be spent on R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the company has possible experience to deal with. Obtain most favorable companies with a strong commitment to health, to develop the consumer's understandings in the best direction.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Route Potato Chips values and vision and to avoid potential threat of sunk cost.
Long Term Plan (1-10 years)
• Get organizations with health as well as taste aspect, as the base for the Route Potato Chips as a company producing healthy products has been developed under midterm plan and now the business could move towards taste aspect too to understand the consumers, 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.
