With the deep analysis of the above options, it is advised that the company needs to pick the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the business to not only introduce new and innovative products in the market it would also decrease the high expenses on R&D under alternative 2 and increase the revenue margins. It would make it possible for the business to increase its share rates as well, as investors are willing to invest more in business with substantial R&D spending and increase in the total worth of the business.
Action and implementation Strategy
Method can be executed effectively by establishing particular short-term in addition to long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Madison Avenue Digital Media Services A should carry out numerous activities to implement its NHW method effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brand names, which produce the majority of its income.
• Evaluate the current target market in addition to the marketplace sector which is not consist of in the company's circle.
• Evaluate the present financial information to determine the quantity that ought to be spent on the R&D and acquisitions.
• Evaluate the prospective financiers and their nature, i.e. do they desire long term advantages (capital gain), or the want early profits (dividend). It would let the company to know that just how much amount needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the business has prospective experience to deal with. Get most beneficial organizations with a strong dedication to health, to develop the consumer's perceptions in the ideal instructions.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Madison Avenue Digital Media Services A values and vision and to prevent prospective threat of sunk cost.
Long Term Plan (1-10 years)
• Acquire organizations with health along with taste factor, as the base for the Madison Avenue Digital Media Services A as a company producing healthy products has been built under midterm strategy and now the company could move towards taste factor also to comprehend the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to develop new products.
