With the deep analysis of the above alternatives, 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 business to not just present new and innovative items in the market it would also minimize the high expenses on R&D under alternative 2 and increase the profit margins. It would make it possible for the business to increase its share rates also, as financiers are willing to invest more in companies with substantial R&D costs and boost in the total worth of the business.
Action and implementation Strategy
Method can be executed efficiently by establishing specific short-term in addition to long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Aucnet Tv Auction Network System should perform numerous activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brand names, which produce the majority of its income.
• Analyze the existing target market in addition to the market section which is not consist of in the company's circle.
• Examine the present financial data to determine the amount that needs to be spent on the R&D and acquisitions.
• Evaluate the possible investors and their nature, i.e. do they desire long term advantages (capital gain), or the desire early revenues (dividend). It would let the company to know that just how much amount ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the business has potential experience to deal with. Acquire most favorable companies with a strong dedication to health, to build the consumer's understandings in the best direction.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Aucnet Tv Auction Network System values and vision and to prevent prospective danger of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health along with taste factor, as the base for the Aucnet Tv Auction Network System as a business producing healthy items has actually been developed under midterm strategy and now the company could move towards taste element as well to understand 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 construct new products.
