With the deep analysis of the above alternatives, it is suggested that the company ought to choose the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would make it possible for the business to not only introduce new and ingenious items in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the revenue margins. It would allow the company to increase its share costs also, as investors are willing to invest more in business with substantial R&D costs and boost in the total worth of the business.
Action and implementation Strategy
Strategy can be carried out successfully by establishing certain short term along with long term plans. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Sher Wood Hockey Sticks Global Sourcing must carry out various activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brand names, which produce most of its profits.
• Analyze the existing target audience in addition to the market sector which is not consist of in the company's circle.
• Analyze the present financial data to determine the amount that ought to be spent on the R&D and acquisitions.
• Evaluate the prospective financiers and their nature, i.e. do they want long term benefits (capital gain), or the desire early profits (dividend). It would let the company to know that just how much quantity must be spent on R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the company has potential experience to handle. Get most favorable organizations with a strong commitment to health, to construct the client's perceptions in the best direction.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Sher Wood Hockey Sticks Global Sourcing worths and vision and to avoid prospective risk of sunk cost.
Long Term Plan (1-10 years)
• Get companies with health as well as taste aspect, as the base for the Sher Wood Hockey Sticks Global Sourcing as a business producing healthy products has actually been developed under midterm plan and now the business might move towards taste aspect also to comprehend the customers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to construct new items.
