With the deep analysis of the above options, it is recommended that the company must pick 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 introduce new and innovative products in the market it would also lower the high expenses on R&D under alternative 2 and increase the earnings margins. It would make it possible for the business to increase its share costs also, as financiers want to invest more in companies with significant R&D costs and increase in the overall worth of the company.
Action and implementation Strategy
Strategy can be implemented efficiently by developing certain short term along with long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Ocean Park need to carry out various activities to execute its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brands, which create most of its profits.
• Examine the existing target audience as well as the market section which is not include in the business's circle.
• Evaluate the current financial data to measure the quantity that should be invested in the R&D and acquisitions.
• Examine the prospective financiers and their nature, i.e. do they want long term benefits (capital gain), or the want early earnings (dividend). It would let the business to know that just how much amount needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the business has possible experience to handle. Get most favorable companies with a strong dedication to health, to construct the customer's perceptions in the right instructions.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Ocean Park worths and vision and to prevent possible threat of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste aspect, as the base for the Ocean Park as a company producing healthy items has been built under midterm plan and now the company could move towards taste aspect also to grasp 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 brand-new items.
