Group #2: Analysis of Argument
Davis Technologies, a computer-chip maker, could solve its problem of declining sales by dropping its prices. This would make Davis better able to compete in the highly competitive computer chip market. The sales of chips would increase and this would substantially boost Davis' market share.
Describe how well reasoned you find this argument. In the discussion be sure to analyze the line of reasoning and the use of evidence in the argument. For example, you may need to consider what questionable assumptions underlie the thinking and what alternative explanations or counterexamples might weaken the argument's conclusion. You may also address possible changes in the argument that would make it more logically sound, and what, if anything, would help you better evaluate its conclusion.
The argument claims that Davis Technologies,a compute -chip maker,could
solve the problem of declining sales by dropping its prices.Also this would
make Davis better able to compete in the highly competitive compute-chip
market.Thereby,the sales of chips would increase and this would substantially
boost market share of Davis.Stated in this way the argument fails to mention
several key factors,on the basis of which the argument could be evaluated.The
conclusion relies upon assumptions,for which there are no clear
evidences.The argument assumes correlation as causation and thereby the
argument is weak,unconvincing,and has several flaws.
First,the argument readily assumes that the challenge of decreased sales
could only be met by decrease in prices.This statement is a stretch and an
unsubstantiated one.For instance,there could be some other contributing
factors because of which sales could be increased such as the quality of
computer chips,advertising,market analysis of computer-chips can be further
used in amending the designs of chips as per consumer needs.Just by
considering the factor of price of computer chips,author concludes that sales
could be increased.Although price is just one aspect on which sales depends
there are other factors also that are discussed above.By stating this
factor,author fails to give examples based on which author claims the full
dependency of sales on price of computer chips.
Second,argument claims that by dropping its prices, Davis would better be
able to compete in the highly competitive market.Clearly,this statement is an
exaggerated one as the competitors could use same strategy of dropping
prices.Furthermore,there could be increase in quality of computer-chips by
other manufacturers ,thereby decreasing sales of Davis.By stating this , author
generalizes that competition is merely due to price of a product,however there
could be some other key factors influencing the competition.
Finally,the argument concludes that the sales of chips would increase and
would substantially boost Davis' market share.The argument fails in
considering a mere correlation as a causation.In the first place by dropping
prices sales could decrease also if the same strategy is applied by the
manufacturer's who have higher market share,so the argument assumes that
sales could increase by dropping of prices.There could be some other factors
influencing sales that are not discussed.Argument also assumes that the
there would be a boost in Davis' market share that could not be true because
of reasons explained above.The argument could have been made more sound
had author would have given several examples of the causal effect of prices on
sales and market share.
Implicitly,the argument is weak in not considering all contributing factors for
increase in sales.The reasoning given in the argument doesn't identify key
factors based on which a sound argument could have been made.The
argument could be strengthened if author provided ample examples for the
stated causal relation of price and sales.In drawing a conclusion all
contributing factors should be given importance.
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