With the deep analysis of the above options, it is recommended that the company must select the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would allow the company to not just introduce brand-new and innovative products 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 company to increase its share prices too, as financiers want to invest more in companies with considerable R&D costs and boost in the total worth of the business.
Action and implementation Strategy
Technique can be carried out efficiently by establishing specific short term in addition to long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Vina San Pedro ought to perform numerous activities to implement its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brands, which produce most of its income.
• Examine the present target audience in addition to the marketplace section which is not include in the company's circle.
• Evaluate the present financial information to determine the amount that must be invested in the R&D and acquisitions.
• Examine the possible financiers and their nature, i.e. do they want long term benefits (capital gain), or the desire early earnings (dividend). It would let the business to know that how much quantity ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the business has possible experience to handle. Get most beneficial organizations with a strong dedication to health, to develop the client's perceptions in the best direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Vina San Pedro values and vision and to prevent possible threat of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health along with taste factor, as the base for the Vina San Pedro as a business producing healthy products has actually been developed under midterm strategy and now the business might move towards taste factor too to comprehend the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to develop brand-new products.
