With the deep analysis of the above options, it is suggested that the business should pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would make it possible for the company to not just introduce new and innovative items in the market it would likewise lower the high expenditures on R&D under alternative 2 and increase the earnings margins. It would make it possible for the business to increase its share rates too, as investors want to invest more in business with significant R&D spending and boost in the overall worth of the business.
Action and implementation Strategy
Strategy can be implemented efficiently by establishing particular short term in addition to long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Scranton Furniture Co should perform numerous activities to implement its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brands, which generate the majority of its income.
• Analyze the existing target audience along with the market sector which is not include in the company's circle.
• Examine the present financial data to measure the quantity that must be invested in the R&D and acquisitions.
• Examine the potential financiers and their nature, i.e. do they want long term benefits (capital gain), or the desire early earnings (dividend). It would let the company to know that just how much quantity needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the company has possible experience to handle. Acquire most favorable companies with a strong commitment to health, to construct the customer's perceptions in the ideal instructions.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Scranton Furniture Co values and vision and to prevent prospective threat of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health in addition to taste element, as the base for the Scranton Furniture Co as a company producing healthy items has actually been built under midterm plan and now the company might move towards taste element also 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 items.
