With the deep analysis of the above options, it is recommended that the company must choose the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the business to not just introduce new and ingenious items in the market it would likewise lower the high expenditures on R&D under alternative 2 and increase the revenue margins. It would enable the business to increase its share rates too, as investors want to invest more in companies with considerable R&D costs and increase in the total worth of the company.
Action and implementation Strategy
Method can be carried out efficiently by establishing particular short term along with long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Daqi need to carry out various 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 present target market along with the marketplace section which is not consist of in the company's circle.
• Evaluate the existing financial information to measure the amount that needs to be invested in the R&D and acquisitions.
• Evaluate the potential investors and their nature, i.e. do they want long term advantages (capital gain), or the desire early profits (dividend). It would let the company to understand that how much quantity ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the company has possible experience to deal with. Obtain most favorable organizations with a strong dedication to health, to develop the customer's perceptions in the right instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Daqi worths and vision and to prevent potential threat of sunk expense.
Long Term Plan (1-10 years)
• Get companies with health along with taste element, as the base for the Daqi as a business producing healthy products has been constructed under midterm plan and now the company could move towards taste aspect also to grasp the customers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to construct new products.
