With the deep analysis of the above alternatives, it is recommended that the company ought to pick the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would make it possible for the company to not just introduce new and ingenious items in the market it would likewise reduce the high expenses on R&D under alternative 2 and increase the revenue margins. It would make it possible for the company to increase its share prices too, as investors are willing to invest more in business with significant R&D spending and boost in the total worth of the company.
Action and implementation Strategy
Method can be carried out effectively by developing particular short-term as well as long term plans. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Benetton Group should perform numerous activities to execute its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brand names, which create the majority of its profits.
• Analyze the existing target audience in addition to the marketplace segment which is not include in the business's circle.
• Evaluate the present financial data to measure the quantity that ought to be invested in the R&D and acquisitions.
• Examine the potential financiers and their nature, i.e. do they want long term advantages (capital gain), or the desire early profits (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 companies in which the business has potential experience to handle. Obtain most beneficial companies with a strong commitment to health, to develop the customer's understandings in the right instructions.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Benetton Group worths and vision and to prevent possible risk of sunk cost.
Long Term Plan (1-10 years)
• Get companies with health as well as taste element, as the base for the Benetton Group as a company producing healthy items has actually been constructed under midterm plan and now the company could move towards taste aspect also to understand 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 build brand-new products.
