With the deep analysis of the above alternatives, it is suggested that the business should choose the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would make it possible for the company to not just present new and ingenious items in the market it would also decrease the high expenses on R&D under alternative 2 and increase the earnings margins. It would allow the business to increase its share prices too, as financiers are willing to invest more in business with substantial R&D costs and increase in the overall worth of the company.
Action and implementation Strategy
Method can be implemented efficiently by developing specific short term in addition to long term strategies. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Valjibhai Stones must perform various activities to execute its NHW strategy efficiently. 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 produce the majority of its earnings.
• Evaluate the current target market in addition to the market sector which is not include in the company's circle.
• Examine the present financial information to determine the quantity that ought to be invested in the R&D and acquisitions.
• Evaluate the possible investors and their nature, i.e. do they desire long term advantages (capital gain), or the want early revenues (dividend). It would let the business to know that how much quantity ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has potential experience to handle. Obtain most favorable organizations with a strong dedication to health, to construct the consumer's understandings in the best instructions.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Valjibhai Stones worths and vision and to prevent prospective threat of sunk expense.
Long Term Plan (1-10 years)
• Obtain organizations with health in addition to taste aspect, as the base for the Valjibhai Stones as a business producing healthy items has been built under midterm strategy and now the business could 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 significant time to construct brand-new products.