With the deep analysis of the above alternatives, it is suggested that the company ought to select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the company to not just present brand-new and innovative products in the market it would also lower the high expenses on R&D under alternative 2 and increase the profit margins. It would enable the business to increase its share costs as well, as investors want to invest more in companies with significant R&D costs and increase in the overall worth of the company.
Action and implementation Strategy
Strategy can be carried out effectively by establishing particular short-term as well as long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Shanghai Real Estate B ought to perform various activities to implement its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brand names, which generate most of its revenue.
• Examine the current target market along with the marketplace sector which is not include in the company's circle.
• Examine the present financial data to determine the amount that ought to be invested in the R&D and acquisitions.
• Evaluate the potential financiers and their nature, i.e. do they desire long term advantages (capital gain), or the want early profits (dividend). It would let the business to know that just how much quantity should be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the business has prospective experience to handle. Obtain most beneficial organizations with a strong dedication to health, to build the consumer's understandings in the right direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Shanghai Real Estate B values and vision and to prevent prospective threat of sunk expense.
Long Term Plan (1-10 years)
• Acquire organizations with health along with taste factor, as the base for the Shanghai Real Estate B as a business producing healthy items has been built under midterm plan and now the company could move towards taste aspect too 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 significant time to build brand-new products.
