With the deep analysis of the above alternatives, it is advised that the business needs to choose the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the company to not only present new and innovative products in the market it would likewise reduce the high expenditures on R&D under alternative 2 and increase the revenue margins. It would allow the business to increase its share rates as well, as investors want to invest more in business with considerable R&D spending and boost in the overall worth of the company.
Action and implementation Strategy
Technique can be executed successfully by developing specific short-term in addition to long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Rockboro Machine Tools Corporation should carry out different activities to implement its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brands, which generate the majority of its earnings.
• Analyze the present target market as well as the market section which is not include in the business's circle.
• Examine the current financial data to determine the amount that needs to be invested in the R&D and acquisitions.
• Evaluate the potential investors and their nature, i.e. do they desire long term advantages (capital gain), or the want early revenues (dividend). It would let the business to understand that just how much amount must be spent on R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the business has possible experience to deal with. Get most favorable organizations with a strong commitment to health, to construct the client's understandings in the right direction.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Rockboro Machine Tools Corporation worths and vision and to avoid prospective risk of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health as well as taste factor, as the base for the Rockboro Machine Tools Corporation as a company producing healthy products has been developed under midterm strategy and now the business could move towards taste element as well 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 significant time to develop new products.
