With the deep analysis of the above alternatives, it is recommended that the company must 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 new and ingenious products in the market it would likewise decrease the high expenditures on R&D under alternative 2 and increase the profit margins. It would allow the company to increase its share rates too, as investors are willing to invest more in companies with considerable R&D spending and boost in the total worth of the business.
Action and implementation Strategy
Technique can be carried out successfully by developing certain short term as well as long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Lundberg Systems 3 Vignettes need to carry out various activities to execute its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brand names, which generate the majority of its income.
• Evaluate the existing target audience as well as the market section which is not include in the company's circle.
• Evaluate the existing financial data to measure the quantity that ought to be invested in the R&D and acquisitions.
• Analyze the possible investors and their nature, i.e. do they desire long term advantages (capital gain), or the desire early earnings (dividend). It would let the business to know that how much amount ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the company has possible experience to deal with. Get most beneficial organizations with a strong commitment to health, to develop the client's perceptions in the right direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Lundberg Systems 3 Vignettes worths and vision and to avoid possible danger of sunk cost.
Long Term Plan (1-10 years)
• Get companies with health along with taste aspect, as the base for the Lundberg Systems 3 Vignettes as a business producing healthy products has actually been built under midterm strategy and now the business might move towards taste element too to grasp 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 develop new products.
