With the deep analysis of the above alternatives, it is recommended that the company ought to pick 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 likewise reduce the high expenditures on R&D under alternative 2 and increase the revenue margins. It would enable the business to increase its share costs also, as investors want to invest more in companies with considerable R&D spending and boost in the total worth of the business.
Action and implementation Strategy
Technique can be implemented efficiently by establishing certain short term as well as long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Urban Water Partners A should perform numerous activities to execute its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brand names, which generate most of its earnings.
• Analyze the current target audience along with the market sector which is not include in the company's circle.
• Analyze the current financial information to measure the amount that needs to be spent on the R&D and acquisitions.
• Evaluate the possible investors and their nature, i.e. do they desire long term advantages (capital gain), or the desire early revenues (dividend). It would let the business to understand that how much amount must be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has possible experience to handle. Get most beneficial companies with a strong dedication to health, to build the consumer's understandings in the ideal instructions.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Urban Water Partners A values and vision and to avoid possible threat of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health along with taste element, as the base for the Urban Water Partners A as a company producing healthy items has actually been constructed under midterm strategy and now the company might move towards taste aspect as well to comprehend 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 brand-new products.
