With the deep analysis of the above alternatives, it is recommended that the company should select the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the business to not only introduce new and ingenious items 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 also, as financiers are willing to invest more in business with considerable R&D spending and increase in the total worth of the business.
Action and implementation Strategy
Strategy can be implemented efficiently by developing certain short term as well as long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Sleepless In La must carry out numerous 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 brand names, which create the majority of its profits.
• Examine the existing target market along with the market segment which is not consist of in the business's circle.
• Evaluate the present financial data to determine the amount that must be invested in the R&D and acquisitions.
• Analyze the prospective investors and their nature, i.e. do they desire long term benefits (capital gain), or the desire early revenues (dividend). It would let the business to know that how much quantity ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the company has prospective experience to deal with. Obtain most favorable organizations with a strong dedication to health, to build the client's understandings in the ideal direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Sleepless In La worths and vision and to avoid potential danger of sunk expense.
Long Term Plan (1-10 years)
• Acquire organizations with health along with taste factor, as the base for the Sleepless In La as a company producing healthy items has actually been built under midterm plan and now the business could move towards taste element too to grasp the consumers, 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.
