With the deep analysis of the above alternatives, it is recommended that the company should choose the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would allow the business to not just present new and ingenious products in the market it would also reduce the high expenditures on R&D under alternative 2 and increase the profit margins. It would enable the business to increase its share prices too, as financiers are willing to invest more in companies with considerable R&D spending and boost in the overall worth of the company.
Action and implementation Strategy
Method can be executed successfully by establishing particular short term along with long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Competitive Dynamics need to perform numerous activities to implement its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brand names, which generate the majority of its income.
• Examine the current target market as well as the marketplace sector which is not include in the company's circle.
• Examine the present financial information to measure the amount that must be invested in the R&D and acquisitions.
• Examine the potential 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 know that just how much quantity should be spent on R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the business has prospective experience to deal with. Get most favorable companies with a strong dedication to health, to build the consumer's understandings in the ideal instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Competitive Dynamics values and vision and to avoid possible danger of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste factor, as the base for the Competitive Dynamics as a business producing healthy items has actually been developed under midterm plan and now the company might move towards taste factor also to comprehend the customers, 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 brand-new items.
