With the deep analysis of the above options, it is suggested that the business should select the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would enable the company to not just present brand-new and ingenious products in the market it would also lower the high expenses on R&D under alternative 2 and increase the profit margins. It would allow the business to increase its share prices also, as financiers are willing to invest more in companies with considerable R&D spending and boost in the overall worth of the company.
Action and implementation Strategy
Method can be executed successfully by establishing certain short-term along with long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Gamestop ought to carry out numerous activities to implement its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brand names, which create most of its revenue.
• Evaluate the current target market in addition to the market sector which is not consist of in the business's circle.
• Examine the present financial data to measure the amount that ought to be spent on the R&D and acquisitions.
• Examine the prospective financiers and their nature, i.e. do they desire long term benefits (capital gain), or the desire early revenues (dividend). It would let the company to understand that how much quantity ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the business has possible experience to deal with. Acquire most beneficial companies with a strong dedication to health, to construct the client's perceptions in the best direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Gamestop values and vision and to prevent potential danger of sunk expense.
Long Term Plan (1-10 years)
• Obtain organizations with health along with taste factor, as the base for the Gamestop as a business producing healthy items has actually been developed under midterm strategy and now the company could move towards taste element also to understand the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to construct new products.
