With the deep analysis of the above alternatives, it is recommended that the business must choose the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would make it possible for the company to not just present new and ingenious items in the market it would also lower the high expenditures on R&D under alternative 2 and increase the earnings margins. It would make it possible for the company to increase its share prices too, as investors are willing to invest more in business with substantial R&D costs and increase in the total worth of the company.
Action and implementation Strategy
Technique can be carried out successfully by establishing certain short term as well as long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Satelite Distribuidora De Petroleo need to carry out various activities to implement its NHW strategy 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 most of its profits.
• Evaluate the present target market as well as the market segment which is not consist of in the company's circle.
• Analyze the current financial information to measure the quantity that must be invested in the R&D and acquisitions.
• Analyze the prospective financiers and their nature, i.e. do they want long term advantages (capital gain), or the desire early earnings (dividend). It would let the business to know that just how much amount needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the company has prospective experience to handle. Obtain most beneficial companies with a strong dedication to health, to construct the consumer's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Satelite Distribuidora De Petroleo worths and vision and to avoid prospective threat of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health along with taste element, as the base for the Satelite Distribuidora De Petroleo as a company producing healthy items has been built under midterm strategy and now the company might move towards taste aspect too to grasp the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to construct new products.
