With the deep analysis of the above alternatives, it is recommended that the company ought to select the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would make it possible for the business to not just present new and ingenious products in the market it would also lower 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 as well, as investors want to invest more in companies with substantial R&D spending and increase in the overall worth of the company.
Action and implementation Strategy
Method can be carried out effectively by developing specific short-term as well as long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy The Ciputra Group Shaping The City In Asia ought to carry out numerous activities to implement its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brand names, which generate the majority of its revenue.
• Examine the current target audience in addition to the market segment which is not consist of in the business's circle.
• Analyze the current financial information to measure the quantity that ought to be spent on the R&D and acquisitions.
• Evaluate the potential investors and their nature, i.e. do they desire long term benefits (capital gain), or the desire early revenues (dividend). It would let the company to understand that just how much quantity should be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the business has possible experience to deal with. Acquire most favorable organizations with a strong commitment to health, to develop the customer's perceptions in the right direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about The Ciputra Group Shaping The City In Asia worths and vision and to avoid potential risk of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health in addition to taste aspect, as the base for the The Ciputra Group Shaping The City In Asia as a business producing healthy products has been developed under midterm plan and now the company might move towards taste element also 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 substantial time to develop brand-new items.
