Problems and solutions Although the prospects of Wesfarmers after the proposed acquisition of Holganix are expected to be promising, certain problems have been anticipated, based on which initial solutions are constructed. 5.1 ProductionThe most difficult part of acquisition is not obtaining the resource, but preparing it for production in a cost-effective manner. It is well known that the price of labor in advanced economies like the United States and Australia can be very high. Production based in Australia or the United States is therefore likely to increase the cost structure and impose an additional financial burden on Wesfarmers. More importantly, such high and persistent costs are unlikely to be sustainable in the future. Solution In order to resolve such an obstacle, an outsourcing strategy can be adopted. The proposed solution is for all labor-intensive practices, such as product production, to be outsourced to Asian countries like China, which have a much more profitable labor market. The Holganix Lab and R&D Center would primarily focus on conceptualizing innovation and realizing ideas through prototype development. Mass production will ultimately be outsourced. 5.2 Sell to