With the deep analysis of the above options, it is suggested that the company should choose the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would allow the business to not just introduce brand-new and ingenious products in the market it would also reduce the high expenditures on R&D under alternative 2 and increase the revenue margins. It would allow the company to increase its share prices too, as investors are willing to invest more in companies with substantial R&D spending and increase in the overall worth of the company.
Action and implementation Strategy
Technique can be carried out effectively by establishing particular short term along with long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Gomak Inc need to perform numerous activities to execute its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brands, which create the majority of its revenue.
• Analyze the present target audience in addition to the market section which is not include in the company's circle.
• Analyze the existing financial information to measure the amount that must be invested in the R&D and acquisitions.
• Analyze the potential financiers and their nature, i.e. do they desire long term advantages (capital gain), or the desire early profits (dividend). It would let the business to understand that how much amount needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the company has possible experience to handle. Get most favorable organizations with a strong dedication to health, to build the customer's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Gomak Inc worths and vision and to avoid possible threat of sunk cost.
Long Term Plan (1-10 years)
• Acquire organizations with health in addition to taste aspect, as the base for the Gomak Inc as a business producing healthy products has actually been developed under midterm strategy and now the company might move towards taste aspect also to grasp 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 items.
