With the deep analysis of the above options, it is recommended that the business ought to select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would make it possible for the business to not just present brand-new and ingenious items in the market it would also minimize the high expenditures on R&D under alternative 2 and increase the earnings margins. It would allow the company to increase its share rates also, as investors are willing to invest more in business with significant R&D costs and boost in the total worth of the business.
Action and implementation Strategy
Technique can be implemented successfully 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 A Costly Train Journey B should carry out various activities to implement its NHW method effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brand names, which create the majority of its earnings.
• Analyze the existing target audience as well as the market segment which is not consist of in the company's circle.
• Analyze the current financial information to determine the amount that needs to be spent on the R&D and acquisitions.
• Evaluate the prospective financiers and their nature, i.e. do they desire long term benefits (capital gain), or the want early revenues (dividend). It would let the business to know that just how much amount needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the company has possible experience to handle. Acquire most favorable companies with a strong commitment to health, to build the customer's perceptions in the ideal instructions.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about A Costly Train Journey B values and vision and to prevent potential danger of sunk expense.
Long Term Plan (1-10 years)
• Get organizations with health as well as taste aspect, as the base for the A Costly Train Journey B as a business producing healthy items has actually been constructed under midterm strategy and now the company could move towards taste factor too 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 substantial time to develop brand-new products.
