GMAT Critical Reasoning (CR) | Re: Company X experienced a significant loss of market share ove

I am a bit confused with the question itself. I think I have read and understood this question incorrectly but aren't we trying to find a statement that justifies the company's reasoning of further increasing the amount of money devoted to research and development? Aren't we trying to find a statement that strengthens this part? C is rather a weakener instead and I am not able to understand how C is the right answer? Please help!

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