(v) New Product Development:
Proctor and Gamble is shown as the number one company in the world reputed for new products development. Companies that fail to develop new products would expose themselves to great risk and might face stagnation in future.
The existing products are vulnerable to changing consumer needs and tastes, new technologies, shortened product life cycles and increased domestic and foreign competition. A company can develop new products either through R&D in-house or by acquiring other company or both.