With the deep analysis of the above alternatives, it is suggested that the company should choose the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would make it possible for the company to not only introduce new and ingenious products in the market it would likewise reduce the high expenses on R&D under alternative 2 and increase the earnings margins. It would allow the business to increase its share rates too, as investors are willing to invest more in business with significant R&D spending and increase in the overall worth of the company.
Action and implementation Strategy
Strategy can be executed successfully by establishing specific short term in addition to long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Gibson Insurance Company should perform various activities to execute its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brand names, which create most of its earnings.
• Examine the existing target audience in addition to the market section which is not consist of in the business's circle.
• Analyze the current financial data to determine the amount that must be invested in the R&D and acquisitions.
• Evaluate the prospective financiers and their nature, i.e. do they want long term advantages (capital gain), or the desire early earnings (dividend). It would let the company to know that how much amount ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the company has potential experience to handle. Get most favorable companies with a strong dedication to health, to construct the consumer's perceptions in the best direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Gibson Insurance Company worths and vision and to prevent possible threat of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health as well as taste factor, as the base for the Gibson Insurance Company as a company producing healthy products has been built under midterm plan and now the company could move towards taste aspect also to grasp the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to construct new items.
