With the deep analysis of the above options, it is suggested that the company must 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 business to not just present new and ingenious products in the market it would also lower the high expenses on R&D under alternative 2 and increase the revenue margins. It would allow the company to increase its share costs as well, as financiers are willing to invest more in business with considerable R&D spending and boost in the total worth of the company.
Action and implementation Strategy
Method can be executed effectively by establishing certain short-term as well as long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Astral Records Ltd North America ought to carry out different activities to execute its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brand names, which create the majority of its earnings.
• Examine the present target audience in addition to the marketplace sector which is not consist of in the company's circle.
• Examine the present financial information to determine the amount that ought to be spent on the R&D and acquisitions.
• Analyze the potential investors and their nature, i.e. do they desire long term benefits (capital gain), or the desire early earnings (dividend). It would let the company to understand that just how much amount should be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the company has prospective experience to deal with. Get most beneficial companies with a strong dedication to health, to build the consumer's understandings in the best direction.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Astral Records Ltd North America worths and vision and to avoid prospective threat of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health in addition to taste aspect, as the base for the Astral Records Ltd North America as a business producing healthy items has actually been developed under midterm strategy and now the company could move towards taste element too 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 substantial time to build new products.
