With the deep analysis of the above alternatives, it is recommended that the company must choose 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 items in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the profit margins. It would enable the company to increase its share costs too, as investors want to invest more in business with considerable R&D spending and increase in the overall worth of the business.
Action and implementation Strategy
Method can be executed efficiently by developing particular short term along with long term plans. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Wal Marts Sustainable Product Index must perform numerous activities to implement its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brand names, which produce most of its revenue.
• Analyze the existing target audience as well as the market sector which is not include in the company's circle.
• Evaluate the existing financial information to measure the amount that ought to be invested in the R&D and acquisitions.
• Analyze the prospective investors and their nature, i.e. do they desire long term advantages (capital gain), or the want early earnings (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)
• Get those companies in which the company has possible experience to handle. Acquire most favorable companies with a strong commitment to health, to develop the client's understandings in the ideal instructions.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Wal Marts Sustainable Product Index worths and vision and to prevent potential risk of sunk expense.
Long Term Plan (1-10 years)
• Acquire organizations with health as well as taste element, as the base for the Wal Marts Sustainable Product Index as a company producing healthy items has been constructed under midterm plan and now the business could move towards taste aspect too to understand the consumers, 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 items.
