With the deep analysis of the above options, it is advised that the business needs to choose 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 present brand-new and ingenious products in the market it would likewise reduce the high expenses on R&D under alternative 2 and increase the revenue margins. It would make it possible for the company to increase its share prices as well, as investors are willing to invest more in companies with substantial R&D costs and boost in the overall worth of the company.
Action and implementation Strategy
Strategy can be carried out effectively by developing particular short-term along with long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Red Bull And Energy Drinks ought to perform different activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brands, which create the majority of its revenue.
• Analyze the existing target market along with the market sector which is not consist of in the business's circle.
• Examine the existing financial information to measure the quantity that needs to be invested in the R&D and acquisitions.
• Examine the possible investors and their nature, i.e. do they desire long term advantages (capital gain), or the want early earnings (dividend). It would let the business to know that just how much amount ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the company has possible experience to handle. Acquire most favorable organizations with a strong commitment to health, to develop the consumer's understandings in the right instructions.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Red Bull And Energy Drinks worths and vision and to avoid prospective danger of sunk expense.
Long Term Plan (1-10 years)
• Obtain organizations with health along with taste element, as the base for the Red Bull And Energy Drinks as a business producing healthy items has been built under midterm plan and now the company might move towards taste aspect too 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 considerable time to develop brand-new items.
