With the deep analysis of the above alternatives, it is advised that the company ought to choose the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would make it possible for the company to not just present brand-new and ingenious products in the market it would likewise decrease the high expenditures on R&D under alternative 2 and increase the earnings margins. It would enable the business to increase its share rates as well, as investors want to invest more in companies with significant R&D costs and increase in the overall worth of the business.
Action and implementation Strategy
Strategy can be implemented effectively by establishing particular short term in addition to long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Konys Inc need to perform different activities to execute its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brand names, which produce most of its revenue.
• Examine the current target audience in addition to the market section which is not include in the business's circle.
• Analyze the current financial data to measure the quantity that must be spent on the R&D and acquisitions.
• Analyze the possible financiers and their nature, i.e. do they want long term benefits (capital gain), or the want early revenues (dividend). It would let the business to understand that how much quantity needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the business has possible experience to handle. Get most favorable organizations with a strong commitment to health, to build the consumer's perceptions in the best instructions.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Konys Inc values and vision and to avoid potential risk of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health in addition to taste aspect, as the base for the Konys Inc as a business producing healthy products has been developed under midterm strategy and now the business could move towards taste element also to grasp the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to construct new items.
