With the deep analysis of the above options, it is suggested that the business 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 only present brand-new and ingenious products in the market it would likewise decrease the high expenditures on R&D under alternative 2 and increase the profit margins. It would enable the business to increase its share rates as well, as financiers are willing to invest more in companies with substantial R&D spending and boost in the overall worth of the company.
Action and implementation Strategy
Method can be implemented effectively by establishing particular short-term as well as long term strategies. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Qihoo need to perform various 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 produce the majority of its revenue.
• Evaluate the current target audience as well as the market sector which is not consist of in the company's circle.
• Examine the current financial information to measure the quantity that should be spent on the R&D and acquisitions.
• Evaluate the potential investors and their nature, i.e. do they want long term benefits (capital gain), or the want early revenues (dividend). It would let the company to understand that just how much amount ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the company has potential experience to handle. Get most beneficial companies with a strong dedication to health, to develop the consumer's understandings in the right instructions.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Qihoo worths and vision and to prevent possible risk of sunk expense.
Long Term Plan (1-10 years)
• Obtain organizations with health in addition to taste element, as the base for the Qihoo as a business producing healthy products has actually been constructed under midterm strategy and now the business might move towards taste aspect also to grasp 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 brand-new products.
