With the deep analysis of the above options, it is suggested that the business should pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the business to not just introduce brand-new and ingenious products in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the earnings margins. It would enable the company to increase its share rates as well, as financiers are willing to invest more in companies with substantial R&D costs and increase in the total worth of the business.
Action and implementation Strategy
Method can be carried out efficiently by developing certain short-term in addition to long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Tiffany And Co must perform 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 brands, which create most of its income.
• Analyze the current target audience in addition to the market section which is not consist of in the company's circle.
• Examine the present financial information to determine the amount that ought to be spent on the R&D and acquisitions.
• Analyze the prospective financiers and their nature, i.e. do they want long term advantages (capital gain), or the want early earnings (dividend). It would let the company to know that how much amount must be spent on R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the company has prospective experience to deal with. Get most favorable companies with a strong commitment to health, to develop the client's perceptions in the best direction.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Tiffany And Co values and vision and to prevent prospective risk of sunk expense.
Long Term Plan (1-10 years)
• Acquire organizations with health as well as taste element, as the base for the Tiffany And Co as a company producing healthy products has actually been built under midterm plan and now the business might move towards taste aspect too to understand the customers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to build new items.
