With the deep analysis of the above alternatives, it is advised that the business should pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the company to not only present 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 allow the company to increase its share costs too, as investors want to invest more in companies with significant R&D costs and boost in the total worth of the business.
Action and implementation Strategy
Strategy can be carried out effectively by establishing particular short term as well as long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Air Miles Canada ought to perform various activities to implement its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brands, which produce most of its income.
• Examine the present target market in addition to the marketplace segment which is not consist of in the business's circle.
• Examine the present financial information to determine the quantity that should be spent on the R&D and acquisitions.
• Analyze the possible financiers 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 must be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the business has possible experience to deal with. Obtain most favorable companies with a strong commitment to health, to develop the consumer's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Air Miles Canada values and vision and to avoid prospective danger of sunk expense.
Long Term Plan (1-10 years)
• Get companies with health in addition to taste aspect, as the base for the Air Miles Canada as a company producing healthy items has actually been built under midterm plan and now the company could move towards taste element as well 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 considerable time to construct new products.
