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Discuss TWO reasons why continuous emphasis on Research & Development could prove to be advantageous for...

Discuss TWO reasons why continuous emphasis on Research & Development could prove to be advantageous for Procter & Gamble. Justify your answers with examples.

2 examples and 2 justifications for the respective examples.

Solutions

Expert Solution

SOLUTION-

Research and development is a very important department of any company. This is the department where all the market and consumer-related theories are made and tested. Thus in this department company takes advantage of the market's flow and sentiments. There are several advantages to research and development. Some of them are -

  1. The company can know the sentiments, needs, wants of the customer before any competitor company.
  2. Company can come up with the desired product for the customers by doing research and study.
  3. Any company can make huge profits if it knows where the market and demand will turn before any of its competitors.
  4. They can reduce or eliminate risks associated in the environment regarding any product or company.
  5. The company can reduce its respective costs and capture a big market share by doing R&D.

For Example-

P&G made tide and it realized that market needs a premium product in this range so they introduced Ariel and it did pretty good in the market , still it is holding a big share in premium washing powder range.

P&G was first to do research on the car air fresheners and after this research, the company launched ambipur and is a top-selling item in its range.

So due to R&D, Companies can achieve abnormal profits and market shares.

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