With the deep analysis of the above options, it is advised that the company ought to choose the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the business to not only introduce brand-new and ingenious products in the market it would likewise decrease the high expenses on R&D under alternative 2 and increase the earnings margins. It would enable the business to increase its share prices too, as investors want to invest more in business with significant R&D spending and boost in the total worth of the company.
Action and implementation Strategy
Strategy can be executed successfully by establishing specific short-term in addition to long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Sm Entertainment should carry out numerous 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 brands, which produce most of its income.
• Evaluate the present target market as well as the market section which is not consist of in the company's circle.
• Analyze the present financial information to measure the amount that needs to be spent on the R&D and acquisitions.
• Analyze the potential financiers and their nature, i.e. do they desire long term benefits (capital gain), or the want early profits (dividend). It would let the company to understand that how much amount must be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has potential experience to handle. Get most beneficial organizations with a strong dedication to health, to build the customer's understandings in the best direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Sm Entertainment worths and vision and to prevent possible danger of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health along with taste aspect, as the base for the Sm Entertainment as a business producing healthy products has been constructed under midterm strategy and now the business could move towards taste element too to comprehend the consumers, 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 items.
