With the deep analysis of the above alternatives, it is suggested that the business should choose the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the business to not just introduce brand-new and innovative products in the market it would also reduce the high expenditures on R&D under alternative 2 and increase the earnings margins. It would allow the company to increase its share costs too, as investors are willing to invest more in companies with significant R&D costs and increase in the overall worth of the company.
Action and implementation Strategy
Technique can be implemented effectively by establishing particular short-term along with long term strategies. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Eskimo Pie should perform various activities to execute its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brands, which produce the majority of its income.
• Analyze the existing target audience as well as the market section which is not consist of in the company's circle.
• Analyze the current financial data to measure the quantity that ought to be spent on the R&D and acquisitions.
• Examine the prospective investors and their nature, i.e. do they desire long term benefits (capital gain), or the desire early revenues (dividend). It would let the business to understand that just how much quantity ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the company has possible experience to deal with. Acquire most beneficial companies with a strong commitment to health, to construct the client's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Eskimo Pie values and vision and to prevent prospective threat of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health along with taste aspect, as the base for the Eskimo Pie as a company producing healthy items has been developed under midterm strategy and now the business could move towards taste element too to grasp 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 brand-new items.
