With the deep analysis of the above options, it is recommended that the company should select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would make it possible for the company to not only present brand-new and innovative products in the market it would likewise minimize the high expenses on R&D under alternative 2 and increase the profit margins. It would allow the company to increase its share prices also, as financiers want to invest more in companies with considerable R&D costs and increase in the total worth of the business.
Action and implementation Strategy
Method can be executed successfully 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 plan The Jia Wu Expansion must carry out numerous activities to implement its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brands, which create most of its earnings.
• Examine the existing target market as well as the market section which is not consist of in the business's circle.
• Evaluate the present financial data to determine the quantity that must be spent on the R&D and acquisitions.
• Examine the prospective investors 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 know that how much quantity ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the business has prospective experience to handle. Acquire most beneficial organizations with a strong dedication to health, to develop the consumer's understandings in the best direction.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about The Jia Wu Expansion worths and vision and to avoid prospective risk of sunk cost.
Long Term Plan (1-10 years)
• Get companies with health along with taste aspect, as the base for the The Jia Wu Expansion as a business producing healthy products has actually been constructed under midterm strategy and now the company could move towards taste aspect also to comprehend the customers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to construct new items.
