With the deep analysis of the above options, 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 enable the business to not just present new and ingenious products in the market it would likewise decrease the high expenses on R&D under alternative 2 and increase the earnings margins. It would enable the business to increase its share costs as well, as investors want to invest more in companies with considerable R&D spending and increase in the overall worth of the company.
Action and implementation Strategy
Method can be executed efficiently 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 Ibm Watson ought to carry out various activities to execute its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brand names, which produce the majority of its earnings.
• Examine the current target market as well as the market section which is not include in the business's circle.
• Evaluate the present financial data to determine the quantity that needs to be invested in the R&D and acquisitions.
• Analyze the prospective financiers and their nature, i.e. do they want long term advantages (capital gain), or the want early earnings (dividend). It would let the business to know that how much quantity needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has prospective experience to deal with. Obtain most favorable organizations with a strong commitment to health, to construct the client's understandings in the right direction.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Ibm Watson values and vision and to avoid possible risk of sunk cost.
Long Term Plan (1-10 years)
• Get organizations with health in addition to taste factor, as the base for the Ibm Watson as a company producing healthy products has actually been developed under midterm strategy and now the business could move towards taste element also 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 significant time to construct new products.
