With the deep analysis of the above options, it is recommended that the business ought to 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 present brand-new and innovative products in the market it would also decrease the high expenses on R&D under alternative 2 and increase the profit margins. It would allow the company to increase its share costs also, as investors want to invest more in business with considerable R&D spending and increase in the total worth of the business.
Action and implementation Strategy
Method can be implemented effectively by establishing certain short-term in addition to long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Iflytek Leading Chinese Speech Technology need to carry out numerous activities to implement 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 brands, which create most of its revenue.
• Evaluate the current target audience as well as the market section which is not include in the company's circle.
• Analyze the existing financial data to determine the amount that needs to be spent on the R&D and acquisitions.
• Examine the potential investors and their nature, i.e. do they desire long term benefits (capital gain), or the desire early earnings (dividend). It would let the business to understand that just how much amount needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has potential experience to handle. Get most beneficial companies with a strong commitment to health, to build the customer's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Iflytek Leading Chinese Speech Technology values and vision and to avoid possible danger of sunk cost.
Long Term Plan (1-10 years)
• Get organizations with health as well as taste factor, as the base for the Iflytek Leading Chinese Speech Technology as a business producing healthy products has actually been built under midterm strategy and now the business might move towards taste factor 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 significant time to build new items.
