Question

"Research and development (R & D) is a process intended to create new or improved technology that can provide a competitive advantage at the business, industry, or national level." Would you agree that research and development plays a key factor in a cost or differentiation strategy? Should companies focus on both strategies or should just choose one and just focus on it? And if just one which one is preferable?  

Answer 1

Research and development is an integral part of any business. A company should focus on both i.e. cost strategy which is a strategy of keeping prices low in comparison to competitors and differentiation strategy which is a strategy of developing different products through R&D.

In this competitive world, it is very important for businesses to have a competitive advantage in both the terms which is cost and product. So i would say, company should adopt such policies which focus on developing new products which are different from their competitors and keep competitive prices in order to survive in the industry

R&D is the backbone of any business. The more research a company do, they come out with more innovative products which gives the company an added advantage over other competitors But it invoves huge cost thus company should keep a budget of R&D and try to minimise cost in order to earn higher profits