With the deep analysis of the above options, it is suggested that the business should 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 ingenious products in the market it would also reduce the high expenses on R&D under alternative 2 and increase the revenue margins. It would make it possible for the business to increase its share rates too, as investors are willing to invest more in business with significant R&D costs and increase in the total worth of the business.
Action and implementation Strategy
Technique can be carried out successfully by developing certain short term in addition to long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Zauner Ornaments should carry out numerous activities to execute its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brands, which generate the majority of its revenue.
• Examine the existing target audience as well as the marketplace section which is not include in the company's circle.
• Examine the existing financial information to measure the quantity that must be invested in 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 understand 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 prospective experience to deal with. Get most favorable companies with a strong dedication to health, to develop the customer's perceptions in the best direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Zauner Ornaments values and vision and to prevent potential risk of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health along with taste aspect, as the base for the Zauner Ornaments as a business producing healthy products has actually been constructed under midterm strategy and now the company could move towards taste factor also to comprehend the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to develop new products.
