With the deep analysis of the above alternatives, it is recommended that the company must pick the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would allow the company to not only present brand-new and innovative products in the market it would likewise reduce the high expenses on R&D under alternative 2 and increase the profit margins. It would allow the company to increase its share prices as well, as investors are willing to invest more in business with significant R&D costs and boost in the total worth of the company.
Action and implementation Strategy
Method can be implemented effectively by developing specific short-term along with long term strategies. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Alphabet Eyes New Frontiers should perform various activities to implement its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brands, which generate the majority of its income.
• Analyze the present target audience in addition to the marketplace segment which is not include in the company's circle.
• Analyze the present financial information to determine the amount that must 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 profits (dividend). It would let the business to understand that how much quantity must be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has possible experience to handle. Acquire most beneficial companies with a strong commitment to health, to build the customer's understandings in the ideal direction.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Alphabet Eyes New Frontiers worths and vision and to avoid potential threat of sunk cost.
Long Term Plan (1-10 years)
• Acquire organizations with health along with taste aspect, as the base for the Alphabet Eyes New Frontiers as a business producing healthy products has actually been developed under midterm strategy and now the business could move towards taste factor as well to comprehend the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to develop new items.
