With the deep analysis of the above alternatives, it is advised that the company needs to select the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the company to not just present new and innovative items in the market it would likewise lower the high expenditures on R&D under alternative 2 and increase the profit margins. It would enable the company to increase its share rates as well, as investors are willing to invest more in companies with substantial R&D costs and increase in the total worth of the company.
Action and implementation Strategy
Technique can be executed efficiently by developing specific short-term as well as long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Madison Avenue Digital Media Services A ought to perform different activities to implement its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brand names, which produce the majority of its profits.
• Analyze the existing target market along with the market sector which is not consist of in the business's circle.
• Examine the existing financial data to determine the quantity that must be invested in the R&D and acquisitions.
• Analyze the potential financiers and their nature, i.e. do they desire long term advantages (capital gain), or the desire early earnings (dividend). It would let the company to understand that how much amount needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the company has prospective experience to handle. Acquire most beneficial organizations with a strong commitment to health, to develop the consumer's perceptions in the best instructions.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Madison Avenue Digital Media Services A worths and vision and to prevent potential risk of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health in addition to taste aspect, as the base for the Madison Avenue Digital Media Services A as a company producing healthy products has actually been developed under midterm plan and now the business might move towards taste factor too 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 considerable time to develop new products.