Secondly, the marketing department fails to recognize alternative strategies that might enhance profits more than discontinuing the deluxe filter would. It is possible that lowering the price of the economy model, raising the price of the deluxe model, or both, may actually maximize profits. A lower-priced economy filter might lure customers from competing products and retain current customers. At the same time, buyers of the deluxe model may place a premium value on its convenience and may be willing to pay an even higher price for the filter.
Thirdly, the marketing department unfairly assumes that the availability of its deluxe filter is the cause of decreasing profits. It is equally possible that other factors, such as increased competition or supply prices, or decreased demand for these kinds of filters generally, are responsible for the decrease in profits. If so, discontinuing the deluxe filter may not serve to maximize, or even enhance, the companys profits.
In conclusion, the departments argument for discontinuing the deluxe filter is weak because the department has not considered the possible adverse consequences of doing so, or the alternatives to doing so. Moreover, the department has failed to establish a clear causal connection between the availability of the deluxe filter and decreasing profits. To strengthen its argument, the department must consider and rule out pricing adjustments as a better strategy to maximize profits, and must provide better evidence that the deluxe filter is the cause of the decrease in profits.
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