With the deep analysis of the above options, it is suggested that the company needs to choose 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 present brand-new and ingenious products in the market it would also minimize the high expenses on R&D under alternative 2 and increase the profit margins. It would make it possible for the company to increase its share prices too, as financiers are willing to invest more in companies with significant R&D costs and boost in the overall worth of the business.
Action and implementation Strategy
Strategy can be implemented successfully by developing particular short-term in addition to long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Colgate Palmolive Co The Precision Toothbrush need to perform different activities to implement its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brands, which generate the majority of its revenue.
• Evaluate the present target market in addition to the market section which is not include in the business's circle.
• Examine the current financial data to determine the amount that needs to be spent on the R&D and acquisitions.
• Evaluate the potential financiers and their nature, i.e. do they want long term benefits (capital gain), or the desire early earnings (dividend). It would let the business to know that how much amount ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the business has potential experience to handle. Acquire most beneficial companies with a strong commitment to health, to build the consumer's understandings in the ideal direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Colgate Palmolive Co The Precision Toothbrush values and vision and to avoid potential danger of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health along with taste factor, as the base for the Colgate Palmolive Co The Precision Toothbrush as a business producing healthy products has been constructed under midterm plan and now the business could move towards taste aspect also 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 considerable time to build new items.
