With the deep analysis of the above options, it is advised that the business must choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the company to not just introduce new and innovative items in the market it would also minimize the high expenditures on R&D under alternative 2 and increase the revenue margins. It would make it possible for the company to increase its share rates also, as financiers want to invest more in companies with significant R&D spending and increase in the overall worth of the company.
Action and implementation Strategy
Technique can be implemented 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 strategy Suntech Power Holdings B The Post Ipo Years need to carry out numerous activities to execute its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brand names, which create most of its earnings.
• Analyze the existing target market along with the market segment which is not consist of in the business's circle.
• Evaluate the existing financial data to measure the amount that ought to be invested in the R&D and acquisitions.
• Analyze the potential investors 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 understand that just how much amount needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the business has potential experience to handle. Acquire most beneficial companies with a strong commitment to health, to develop the client's understandings in the right instructions.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Suntech Power Holdings B The Post Ipo Years worths and vision and to prevent possible risk of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health in addition to taste factor, as the base for the Suntech Power Holdings B The Post Ipo Years as a company producing healthy items has been constructed under midterm plan and now the business could move towards taste element as well 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 considerable time to develop new products.
