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Nivea A Recommendations Case Studies

Case Study Solution And Analysis

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Nivea A Case Study Solution

With the deep analysis of the above options, it is suggested that the company needs to pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would make it possible for the company to not just present brand-new and innovative items in the market it would likewise minimize the high expenses on R&D under alternative 2 and increase the profit margins. It would enable the business to increase its share rates too, as investors want to invest more in companies with substantial R&D costs and boost in the overall worth of the business.

Action and implementation Strategy

Method can be carried out effectively by establishing specific short-term as well as long term strategies. These strategies could be as follows;

Short Term Plan (0-1 year)

• Under the short term plan Nivea A ought to carry out different activities to execute its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brand names, which generate most of its revenue.
• Evaluate the existing target audience as well as the market sector which is not consist of in the company's circle.
• Evaluate the present financial data to determine the quantity that needs to be spent on the R&D and acquisitions.
• Evaluate the potential financiers and their nature, i.e. do they want long term advantages (capital gain), or the desire early profits (dividend). It would let the business to know that how much quantity must be spent on R&D.

Mid Term Plan (1-5 years)

• Get those companies in which the company has potential experience to handle. Obtain most favorable organizations with a strong commitment to health, to develop the consumer's perceptions in the right direction.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Nivea A worths and vision and to prevent possible threat of sunk expense.

Long Term Plan (1-10 years)

• Obtain organizations with health in addition to taste aspect, as the base for the Nivea A as a business producing healthy products has been constructed under midterm strategy and now the business could move towards taste factor as well 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 develop new items.