With the deep analysis of the above alternatives, it is suggested that the company needs to 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 only present brand-new and ingenious items in the market it would likewise lower the high expenses on R&D under alternative 2 and increase the profit margins. It would make it possible for the company to increase its share rates as well, as financiers are willing to invest more in business with significant R&D spending and increase in the overall worth of the business.
Action and implementation Strategy
Strategy can be carried out efficiently by developing specific short-term along with long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Michael Ovitz And The Walt Disney Co A should perform numerous activities to execute its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brands, which produce the majority of its revenue.
• Analyze the existing target market as well as the market section which is not consist of in the business's circle.
• Analyze the present financial data to measure the amount that ought to be spent on the R&D and acquisitions.
• Analyze the prospective financiers and their nature, i.e. do they desire long term advantages (capital gain), or the want early profits (dividend). It would let the business to understand that just how much quantity needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the business has possible experience to handle. Get most beneficial organizations with a strong commitment to health, to construct the consumer's understandings in the best direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Michael Ovitz And The Walt Disney Co A values and vision and to prevent possible danger of sunk cost.
Long Term Plan (1-10 years)
• Acquire organizations with health as well as taste element, as the base for the Michael Ovitz And The Walt Disney Co A as a company producing healthy products has actually been developed under midterm strategy and now the business might move towards taste element also to grasp the customers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to construct new items.
