With the deep analysis of the above options, it is suggested that the company should select the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would allow the company to not just present brand-new and innovative products in the market it would also reduce the high expenses on R&D under alternative 2 and increase the revenue margins. It would make it possible for the company to increase its share rates too, as investors are willing to invest more in business with significant R&D costs and boost in the total worth of the business.
Action and implementation Strategy
Technique can be carried out effectively 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 plan Saks Incorporated need to perform various activities to execute its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand 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 sector which is not consist of in the company's circle.
• Examine the present financial information to measure the quantity that ought to be spent on the R&D and acquisitions.
• Analyze the potential financiers and their nature, i.e. do they want long term advantages (capital gain), or the want early earnings (dividend). It would let the company to understand that just how much quantity ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the company has prospective experience to handle. Get most beneficial organizations with a strong commitment to health, to develop the client's perceptions in the right direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Saks Incorporated values and vision and to avoid potential danger of sunk cost.
Long Term Plan (1-10 years)
• Acquire organizations with health in addition to taste aspect, as the base for the Saks Incorporated as a business producing healthy products has been constructed under midterm plan and now the business might move towards taste element as well to grasp 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 new items.
