With the deep analysis of the above alternatives, it is advised that the business ought to choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the business to not only introduce brand-new and ingenious products in the market it would likewise reduce the high expenditures on R&D under alternative 2 and increase the profit margins. It would make it possible for the business to increase its share prices as well, as financiers are willing to invest more in companies with significant R&D spending and boost in the overall worth of the business.
Action and implementation Strategy
Strategy can be executed effectively by establishing particular short term as well as long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Knox Electronics need to carry out numerous activities to execute its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brand names, which create the majority of its profits.
• Analyze the present target market as well as the market sector which is not consist of in the business's circle.
• Evaluate the present financial information to determine the quantity that must be spent on the R&D and acquisitions.
• Evaluate the possible investors and their nature, i.e. do they want long term advantages (capital gain), or the desire early earnings (dividend). It would let the company to know that how much amount needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the business has prospective experience to deal with. Acquire most favorable companies with a strong commitment to health, to build the customer's understandings in the ideal direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Knox Electronics values and vision and to avoid potential risk of sunk expense.
Long Term Plan (1-10 years)
• Obtain companies with health as well as taste factor, as the base for the Knox Electronics as a business producing healthy products has actually been constructed under midterm plan and now the company might move towards taste element too to comprehend the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to construct new products.
