With the deep analysis of the above alternatives, it is advised that the company must 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 present new and ingenious products in the market it would also decrease the high expenses on R&D under alternative 2 and increase the revenue margins. It would make it possible for the business to increase its share prices also, as financiers want to invest more in companies with considerable R&D costs and increase in the total worth of the company.
Action and implementation Strategy
Technique can be executed successfully by establishing particular short-term as well as long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Sarah Harris should carry out numerous activities to implement its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brand names, which generate the majority of its earnings.
• Examine the existing target audience along with the market segment which is not consist of in the business's circle.
• Analyze the current financial data to measure the amount that ought to be spent on the R&D and acquisitions.
• Evaluate the possible investors and their nature, i.e. do they desire long term benefits (capital gain), or the want early earnings (dividend). It would let the company to know that just how much quantity ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the business has possible experience to handle. Acquire most favorable companies with a strong commitment to health, to develop the consumer's perceptions in the right direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Sarah Harris worths and vision and to prevent potential threat of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health in addition to taste element, as the base for the Sarah Harris as a business producing healthy products has been developed under midterm strategy and now the company might move towards taste element also 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 build new items.
