Curly05 wrote:
The recent upheaval in the office-equipment retail business, in which many small firms have gone out of business, has been attributed to the advent of office equipment superstores whose high sales volume keeps their prices low. This analysis is flawed, however, since even today the superstores control a very small share of the retail market.
Which of the following, if true, would most weaken the argument that the analysis is flawed?
(A) Most of the larger customers for office equipment purchase under contract directly from manufacturers and thus do not participate in the retail market.
(B) The superstoresтАЩ heavy advertising of their low prices has forced prices down throughout the retail market for office supplies.
(C) Some of the superstores that only recently opened have themselves gone out of business.
(D) Most of the office equipment superstores are owned by large retailing chains that also own stores selling other types of goods.
(E) The growing importance of computers in most offices has changed the kind of office equipment retailers must stock.
Conclusion:- The analysis is flawed.
What is the analysis:- Superstore's low price strategy is the reason for closure of small stores.
Weaken the conclusion means we have to show that SS is responsible for closure of small stores.
possible reasons:-
1) There is no customer loyalty under this category. Whoever offers cheap items gets the most customers.
2) Small stores are unable to offer the same or lower price.
3) Although market share of SS is low, but split of remaining market share is even lower among other competitors and likely to decrease in future.
4) There is none other than price that is causing this effect to happen in retail- market.
(A) Most of the larger customers for office equipment purchase under contract directly from manufacturers and thus do not participate in the retail market.
They DO NOT participate in the market we are concerned about. (B) The superstoresт heavy advertising of their low prices has forced prices down throughout the retail market for office supplies.
Possible reason. (C) Some of the superstores that only recently opened have themselves gone out of business.
We want to show why small stores are not in business any more. (D) Most of the office equipment superstores are owned by large retailing chains that also own stores selling other types of goods.
We are not concerned about other types of goods.
(E) The growing importance of computers in most offices has changed the kind of office equipment retailers must stock.
are those equipment only with Superstores? Not sure.