With the deep analysis of the above alternatives, it is recommended that the company must select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the company to not just introduce new and innovative products in the market it would likewise reduce the high expenditures on R&D under alternative 2 and increase the profit margins. It would enable the company to increase its share rates also, as investors are willing to invest more in companies with significant R&D costs and boost in the total worth of the company.
Action and implementation Strategy
Method can be carried out effectively by establishing particular short-term as well as long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Merck And Co Inc Corporate Strategy Organization And Culture A should carry out different activities to implement its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brand names, which produce most of its revenue.
• Analyze the current target market in addition to the marketplace section which is not include in the business's circle.
• Analyze the present financial information to determine the amount that should be spent on the R&D and acquisitions.
• Evaluate the prospective investors and their nature, i.e. do they want long term benefits (capital gain), or the want early revenues (dividend). It would let the company to understand that how much amount needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the business has prospective experience to deal with. Get most favorable organizations with a strong commitment to health, to construct the customer's perceptions in the right direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Merck And Co Inc Corporate Strategy Organization And Culture A values and vision and to avoid prospective threat of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health in addition to taste element, as the base for the Merck And Co Inc Corporate Strategy Organization And Culture A as a company producing healthy products has been constructed under midterm strategy and now the business could move towards taste aspect also to comprehend the customers, 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.
