With the deep analysis of the above alternatives, it is recommended that the company ought to choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the company to not just present new and ingenious products in the market it would also reduce the high expenditures on R&D under alternative 2 and increase the revenue margins. It would make it possible for the business to increase its share prices as well, as financiers are willing to invest more in companies with substantial R&D costs and boost in the total worth of the business.
Action and implementation Strategy
Strategy can be implemented effectively by developing certain short-term as well as long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy The Xiangyang Market need to carry out different activities to implement its NHW method effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brands, which produce the majority of its income.
• Evaluate the present target audience as well as the market segment which is not consist of in the company's circle.
• Evaluate the current financial information to measure the amount that needs to be invested in the R&D and acquisitions.
• Evaluate the potential investors and their nature, i.e. do they desire long term advantages (capital gain), or the desire early earnings (dividend). It would let the business to understand that how much quantity needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the company has potential experience to handle. Get most favorable organizations with a strong commitment to health, to develop the client's perceptions in the right instructions.
• Focus more on acquisitions than R&D to build the base in the customer's mind about The Xiangyang Market worths and vision and to prevent possible threat of sunk expense.
Long Term Plan (1-10 years)
• Obtain companies with health along with taste element, as the base for the The Xiangyang Market as a company producing healthy items has actually been developed under midterm plan and now the company might 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 significant time to develop brand-new products.
