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 make it possible for the company to not just introduce new and innovative products in the market it would likewise reduce the high expenditures on R&D under alternative 2 and increase the earnings margins. It would make it possible for the business to increase its share costs as well, as financiers want to invest more in business with significant R&D costs and increase in the overall worth of the company.
Action and implementation Strategy
Strategy can be implemented efficiently by developing certain short term in addition to long term plans. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Zappos Customer Loyalty Team must perform different activities to execute its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brand names, which generate the majority of its profits.
• Analyze the existing target audience along with the marketplace section which is not consist of in the business's circle.
• Evaluate the present financial information to determine the quantity that must be invested in the R&D and acquisitions.
• Evaluate the possible financiers and their nature, i.e. do they desire long term benefits (capital gain), or the want early profits (dividend). It would let the business to understand that how much quantity needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the company has prospective experience to handle. Obtain most favorable companies with a strong dedication to health, to build the consumer's perceptions in the right instructions.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Zappos Customer Loyalty Team worths and vision and to avoid prospective threat of sunk expense.
Long Term Plan (1-10 years)
• Obtain companies with health along with taste element, as the base for the Zappos Customer Loyalty Team as a business producing healthy products has been built under midterm plan and now the business might move towards taste factor also 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 substantial time to develop new products.
