With the deep analysis of the above alternatives, it is recommended that the company should pick 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 only introduce new and innovative products in the market it would likewise minimize the high expenditures on R&D under alternative 2 and increase the profit margins. It would make it possible for the company to increase its share prices as well, as investors want to invest more in companies with significant R&D costs and boost in the overall worth of the company.
Action and implementation Strategy
Technique can be implemented efficiently by establishing particular short-term along with long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Tong Lung Metal Industry Co Ltd ought to perform different activities to execute its NHW technique 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 earnings.
• Examine the current target audience as well as the market section which is not include in the company's circle.
• Examine the present financial data to determine the quantity that must be spent on the R&D and acquisitions.
• Examine 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 just how much amount must be invested in R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the business has prospective experience to handle. Get most favorable organizations with a strong commitment to health, to construct the customer's understandings in the best direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Tong Lung Metal Industry Co Ltd values and vision and to prevent potential threat of sunk cost.
Long Term Plan (1-10 years)
• Get organizations with health as well as taste aspect, as the base for the Tong Lung Metal Industry Co Ltd as a business producing healthy items has actually been constructed under midterm strategy and now the business might move towards taste factor also to understand the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to construct new items.
