With the deep analysis of the above alternatives, it is suggested that the company needs to select the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would allow the business to not only present brand-new and ingenious items in the market it would likewise reduce the high expenditures on R&D under alternative 2 and increase the earnings margins. It would make it possible for the company to increase its share rates too, as financiers want to invest more in business with considerable R&D spending and boost in the total worth of the business.
Action and implementation Strategy
Method can be implemented efficiently by developing particular short term in addition to long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan The Domik Project must perform different activities to implement its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brand names, which create most of its earnings.
• Examine the current target market along with the market sector which is not include in the business's circle.
• Analyze the present financial data to determine the quantity that should be invested in the R&D and acquisitions.
• Analyze the potential financiers and their nature, i.e. do they desire long term advantages (capital gain), or the want early earnings (dividend). It would let the business to know that just how much amount should be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the business has prospective experience to handle. Get most beneficial companies with a strong dedication to health, to build the client's perceptions in the right direction.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about The Domik Project values and vision and to avoid potential threat of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health along with taste factor, as the base for the The Domik Project as a company producing healthy items has actually been built under midterm plan and now the company could move towards taste factor 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 construct new products.
