With the deep analysis of the above alternatives, it is suggested that the company ought to pick the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would make it possible for the business to not just introduce brand-new and ingenious products in the market it would also reduce the high expenses on R&D under alternative 2 and increase the earnings margins. It would enable the business to increase its share costs too, as investors want to invest more in business with significant R&D spending and increase in the overall worth of the company.
Action and implementation Strategy
Technique can be carried out successfully by establishing certain short-term as well as long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Mercedes Benz India ought to perform different activities to implement its NHW method effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brands, which generate most of its revenue.
• Examine the present target market along with the market sector which is not consist of in the business's circle.
• Examine the current financial data to measure the quantity that should be invested in the R&D and acquisitions.
• Evaluate the possible investors and their nature, i.e. do they desire long term advantages (capital gain), or the desire early profits (dividend). It would let the company to know that how much amount needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the company has potential experience to deal with. Obtain most favorable organizations with a strong dedication to health, to develop the client's perceptions in the ideal instructions.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Mercedes Benz India worths and vision and to prevent potential risk of sunk expense.
Long Term Plan (1-10 years)
• Get organizations with health as well as taste aspect, as the base for the Mercedes Benz India as a company producing healthy products has been built under midterm plan and now the company could move towards taste element too to comprehend the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to build brand-new items.
