In: Accounting
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 -
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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