With the deep analysis of the above alternatives, it is advised that the business must pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the company to not just present new and ingenious products in the market it would likewise decrease the high expenditures on R&D under alternative 2 and increase the profit margins. It would allow the business to increase its share prices too, as financiers are willing to invest more in business with considerable R&D costs and boost in the overall worth of the business.
Action and implementation Strategy
Method can be executed effectively by developing certain short-term in addition to long term plans. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Seitel Inc need to carry out numerous activities to execute its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brand names, which create most of its earnings.
• Examine the existing target audience in addition to the market segment which is not include in the business's circle.
• Examine the present financial information to measure the amount that needs to be invested in the R&D and acquisitions.
• Evaluate the prospective financiers and their nature, i.e. do they want long term advantages (capital gain), or the want early profits (dividend). It would let the business to understand that just how much amount ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the company has potential experience to deal with. Get most favorable organizations with a strong dedication to health, to build the consumer's understandings in the best instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Seitel Inc values and vision and to prevent possible threat of sunk expense.
Long Term Plan (1-10 years)
• Acquire organizations with health as well as taste element, as the base for the Seitel Inc as a business producing healthy items has actually been developed under midterm plan and now the business might move towards taste aspect too to comprehend the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to build new items.
