With the deep analysis of the above alternatives, it is suggested that the company must pick the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would enable the business to not only present brand-new and innovative items in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the profit margins. It would allow the company to increase its share prices as well, as financiers are willing to invest more in companies with considerable R&D spending and boost in the total worth of the company.
Action and implementation Strategy
Technique can be carried out effectively by developing certain short term along with long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Gucci Group Nv B ought to carry out numerous activities to execute its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brands, which create most of its profits.
• Examine the existing target market as well as the market section which is not include in the business's circle.
• Examine the existing financial data to measure the quantity that needs to be spent on the R&D and acquisitions.
• Examine the possible investors and their nature, i.e. do they desire long term advantages (capital gain), or the want early revenues (dividend). It would let the company to understand that just how much quantity should be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the business has potential experience to deal with. Get most beneficial organizations with a strong dedication to health, to develop the consumer's perceptions in the right direction.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Gucci Group Nv B worths and vision and to avoid possible threat of sunk cost.
Long Term Plan (1-10 years)
• Acquire organizations with health along with taste factor, as the base for the Gucci Group Nv B as a business producing healthy items has been constructed under midterm strategy and now the company could move towards taste aspect as well 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 develop new products.
