With the deep analysis of the above options, it is suggested that the company should select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would make it possible for the business to not only present brand-new and innovative products in the market it would likewise lower the high expenditures on R&D under alternative 2 and increase the earnings margins. It would make it possible for the business to increase its share costs as well, as investors are willing to invest more in business with significant R&D costs and increase in the total worth of the company.
Action and implementation Strategy
Method can be implemented effectively by establishing 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 plan Tokyo Afm ought to perform numerous activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brands, which produce the majority of its earnings.
• Examine the present target market as well as the marketplace sector which is not include in the business's circle.
• Analyze the existing financial data to measure the quantity that needs to be invested in the R&D and acquisitions.
• Analyze the potential financiers and their nature, i.e. do they want long term benefits (capital gain), or the desire early revenues (dividend). It would let the business to know that how much quantity needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the business has potential experience to deal with. Acquire most favorable organizations with a strong commitment to health, to construct the client's understandings in the right instructions.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Tokyo Afm values and vision and to prevent prospective danger of sunk expense.
Long Term Plan (1-10 years)
• Get companies with health as well as taste aspect, as the base for the Tokyo Afm as a company producing healthy items has been built under midterm strategy and now the business could move towards taste factor 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 construct brand-new items.
