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2012-01-27 06:05

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In this memo the marketing director of Bargain Brand Cereal claims that the company will
continue to make a profit from sales of its cereal, and therefore that the company should
expand its bargain-priced product line to include other foods as well. To support these
assertions, the memo points out that Bargain Brand is still earning a profit from its cereal sales,
despite the fact that major competitors have lowered their cereal prices and plan to offer
bargain-priced cereal brands. On several grounds, this evidence lends little credible support
for the memo's condusions.
First of all, the mere fact that Bargain Brand is still earning a profit from its cereal sales is not
the key in determining whether its competitors are succeeding. The key instead is the extent to
which Bargain Brand profits have diminished since other companies lowered their cereal
prices. It is entirely possible that Bargain Brand has been less profitable since its competitors
lowered their cereal prices, and that given a little more time these competitors will draw
enough additional sales away from Bargain Brand to render it unprofitable. The fact that the
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other companies offer the "top brands" is strong evidence that these companies can survive a
prolonged price war and ultimately prevail over Bargain Brand.
Secondly, the memo states that several major competitors plan to offer their own special
bargain brands to compete directly with Bargain Brand. Yet the memo fails to account for this
fact m concluding that Bargain Brand WIU continue to be profitable. In all likelihood, after the
introduction of competing brands Bargain Brand's profits will diminish even further. Without
providing evidence that this will not occur, the director cannot convincingly conclude that
Bargain Brand will continue to profit from its cereal sales.
Thirdly, based on the fact that Bargain Brand continues to profit from cereal sales, the memo
concludes that Bargain Brand should expand its product line to include other food products.
Yet the memo provides no evidence that Bargain Brand is likely to be profitable in other
markets. Common sense suggests the contrary--that Bargain Brand is unlikely to succeed in
markets in which it has no previous experience or exposure. Without providing evidence as to
how Bargain Brand would overcome natural barriers to entry into other markets, the director's
conclusion is weak at best. 感谢您阅读《GRE作文范文大全(121) 》一文,出国留学网(liuxue86.com)编辑部希望本文能帮助到您。

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