With the deep analysis of the above options, it is suggested that the business should choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the business to not just introduce new and ingenious items in the market it would also reduce the high expenditures on R&D under alternative 2 and increase the profit margins. It would make it possible for the business to increase its share costs too, as financiers are willing to invest more in companies with substantial R&D costs and boost in the overall worth of the company.
Action and implementation Strategy
Technique can be implemented efficiently by developing certain short term along with long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy American Airlines Inc Revenue Management need to carry out different 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 brands, which generate the majority of its revenue.
• Evaluate the existing target market in addition to the marketplace segment which is not include in the business's circle.
• Examine the existing financial information to determine the quantity that ought to be invested in the R&D and acquisitions.
• Examine the potential investors and their nature, i.e. do they want long term benefits (capital gain), or the desire early profits (dividend). It would let the company to understand that how much amount must be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the company has prospective experience to deal with. Get most beneficial organizations with a strong commitment to health, to construct the client's understandings in the right direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about American Airlines Inc Revenue Management worths and vision and to prevent prospective risk of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste element, as the base for the American Airlines Inc Revenue Management as a company producing healthy items has been constructed under midterm plan and now the company might move towards taste aspect 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 new items.
