With the deep analysis of the above alternatives, it is advised that the company should select the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the company to not only introduce brand-new and innovative products in the market it would also reduce the high expenses on R&D under alternative 2 and increase the earnings margins. It would enable the business to increase its share prices also, as investors are willing to invest more in companies with substantial R&D costs and increase in the overall worth of the company.
Action and implementation Strategy
Method can be carried out successfully by establishing particular short term in addition to long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Ring Medical need to perform various activities to implement its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brand names, which generate the majority of its revenue.
• Evaluate the current target audience as well as the market sector which is not include in the company's circle.
• Examine the existing financial data to measure the quantity that needs to be spent on the R&D and acquisitions.
• Analyze the potential investors and their nature, i.e. do they want long term advantages (capital gain), or the want early revenues (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)
• Acquire those companies in which the business has prospective experience to deal with. Get most favorable organizations with a strong dedication to health, to construct the client's perceptions in the ideal instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Ring Medical worths and vision and to prevent prospective danger of sunk expense.
Long Term Plan (1-10 years)
• Obtain organizations with health in addition to taste factor, as the base for the Ring Medical as a business producing healthy products has been developed under midterm strategy and now the company could move towards taste aspect too to comprehend the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to develop new items.
