With the deep analysis of the above options, it is advised that the business ought to pick the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would enable the business to not only present new and innovative items in the market it would likewise decrease the high expenditures on R&D under alternative 2 and increase the earnings margins. It would enable the business to increase its share costs also, 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
Technique can be implemented successfully by developing certain short term in addition to long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Deutsche Allgemeinversicherung should carry out numerous activities to implement its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brands, which produce most of its profits.
• Examine the current target audience in addition to the market sector which is not consist of in the company's circle.
• Evaluate the present financial data to determine the amount that needs to be invested in the R&D and acquisitions.
• Evaluate the potential investors and their nature, i.e. do they desire long term advantages (capital gain), or the desire early revenues (dividend). It would let the business to know that just how much quantity should be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the company has prospective experience to deal with. Obtain most favorable companies with a strong commitment to health, to construct the consumer's understandings in the right instructions.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Deutsche Allgemeinversicherung values and vision and to prevent potential risk of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health in addition to taste element, as the base for the Deutsche Allgemeinversicherung as a business producing healthy products has actually been built under midterm plan and now the business might move towards taste factor also to understand the customers, 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.
