With the deep analysis of the above options, it is suggested that the business must select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the business to not just present new and ingenious items in the market it would likewise reduce the high expenditures on R&D under alternative 2 and increase the earnings margins. It would make it possible for the company to increase its share prices also, as investors want to invest more in business with substantial R&D spending and boost in the total worth of the company.
Action and implementation Strategy
Strategy can be implemented efficiently by developing certain short-term along with long term plans. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan From Imitation To Innovation Zongshen Industrial Group should perform numerous activities to execute its NHW technique 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 create the majority of its earnings.
• Evaluate the existing target audience as well as the market sector which is not include in the company's circle.
• Evaluate the existing financial data to determine the amount that should be invested in the R&D and acquisitions.
• Examine the prospective investors and their nature, i.e. do they want long term benefits (capital gain), or the desire early profits (dividend). It would let the company to understand that how much amount needs to 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 develop the consumer's perceptions in the best direction.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about From Imitation To Innovation Zongshen Industrial Group worths and vision and to prevent prospective threat of sunk expense.
Long Term Plan (1-10 years)
• Acquire organizations with health in addition to taste factor, as the base for the From Imitation To Innovation Zongshen Industrial Group as a company producing healthy items has been constructed under midterm plan and now the company could move towards taste factor too to grasp 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 build new items.
