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# Approximately two hundred brands of personal computers are

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Intern
Joined: 29 May 2009
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Approximately two hundred brands of personal computers are  [#permalink]

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17 Jul 2009, 11:23
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Approximately two hundred brands of personal computers are being manufactured, but we currently limit our inventory to only the eight most popular brands. We plan to increase greatly the number of computers we sell by expanding our inventory to include the ten best-selling brands.
Which of the following, if true, points out a major weakness of the plan above?
(A) The capabilities of three most popular personal computers add to be approximately equivalent, with no brand having consistent superiority in all respects.
(B) The seven most popular brands of personal computers account for almost all computers sold.
(C) As the users of personal computers become more sophisticated, they are more willing to buy less well-known brands of computers.
(D) Less popular brands of computers often provide less profit to the retailer because prices must be discounted to attract customers.
(E) The leading brand of personal computer has been losing sales to less popular brands that offer similar capabilities for less money.

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Joined: 12 Jun 2009
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Location: United States (NC)
Concentration: Strategy, Finance
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17 Jul 2009, 11:51
apramanik wrote:
Approximately two hundred brands of personal computers are being manufactured, but we currently limit our inventory to only the eight most popular brands. We plan to increase greatly the number of computers we sell by expanding our inventory to include the ten best-selling brands.
Which of the following, if true, points out a major weakness of the plan above?

(A) The capabilities of three most popular personal computers add to be approximately equivalent, with no brand having consistent superiority in all respects.
the manufacture has top 8 so seems irrelevant especially we are talking about sales here.

(B) The seven most popular brands of personal computers account for almost all computers sold.
MAYBE. If this is the case then the company isn't expanding its inventory much at all since 7 of the "top 10" would be existing brands....

(C) As the users of personal computers become more sophisticated, they are more willing to buy less well-known brands of computers.
We dont know the figures though so it might be negligible

(D) Less popular brands of computers often provide less profit to the retailer because prices must be discounted to attract customers.
good info but doesnt say how much sales those generate.

(E) The leading brand of personal computer has been losing sales to less popular brands that offer similar capabilities for less money.
MAYBE - the manufacture is expanding to top 10 best selling so theoretically that COULD cover these "rising stars". Also we dont know how spread out or concentrated the losses are - if it is spread out among 100 brands then not a big deal. if it is to a couple then it is a big deal and the manufacture would cover it.

My answer is B. If the statement in B is valid then the manufacture is only going to have 11 brands to sell instead of the intention of selling 18 brands probably..
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17 Jul 2009, 13:02
apramanik wrote:
Approximately two hundred brands of personal computers are being manufactured, but we currently limit our inventory to only the eight most popular brands. We plan to increase greatly the number of computers we sell by expanding our inventory to include the ten best-selling brands.

Which of the following, if true, points out a major weakness of the plan above?

(A) The capabilities of three most popular personal computers add to be approximately equivalent, with no brand having consistent superiority in all respects.

Out of scope.

(B) The seven most popular brands of personal computers account for almost all computers sold.

The top 8 brands are already there, adding the 9th & 10th best selling brands won't increase sales if this statement is true.

(C) As the users of personal computers become more sophisticated, they are more willing to buy less well-known brands of computers.

This actually strengthens the argument.

(D) Less popular brands of computers often provide less profit to the retailer because prices must be discounted to attract customers.

Profits are Out of scope. We are discussing sales only.

(E) The leading brand of personal computer has been losing sales to less popular brands that offer similar capabilities for less money.

This weakens the argument as well, but the definition of 'less popular brands' is unclear. Does the 'less popular brands' include 9th & 10th ranked brands?

So B for me.!
Director
Joined: 05 Jun 2009
Posts: 678
WE 1: 7years (Financial Services - Consultant, BA)

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17 Jul 2009, 13:42
B
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Senior Manager
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17 Jul 2009, 17:25
IMO B.
Manager
Joined: 21 Jul 2009
Posts: 224
Location: New York, NY

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27 Jul 2009, 13:55
I got E.

B is out of scope because the fact that in the past the leading 7 brands have accounted for virtually all sales has no bearing on the future when new computers are introduced to the shelves!

E shows a flaw in the original goal: To sell a greater number of computers. If buyers switch from the leading brands to the #8 and #9 then there will be no increase in the number of computers sold.
Intern
Joined: 21 Jul 2009
Posts: 31

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27 Jul 2009, 16:20
apramanik wrote:
Approximately two hundred brands of personal computers are being manufactured, but we currently limit our inventory to only the eight most popular brands. We plan to increase greatly the number of computers we sell by expanding our inventory to include the ten best-selling brands.
Which of the following, if true, points out a major weakness of the plan above?
(A) The capabilities of three most popular personal computers add to be approximately equivalent, with no brand having consistent superiority in all respects.
(B) The seven most popular brands of personal computers account for almost all computers sold.
(C) As the users of personal computers become more sophisticated, they are more willing to buy less well-known brands of computers.
(D) Less popular brands of computers often provide less profit to the retailer because prices must be discounted to attract customers.
(E) The leading brand of personal computer has been losing sales to less popular brands that offer similar capabilities for less money.

Definitely B. If the seven most popular brands of personal computers account for almost all computers sold, then increasing inventory from the 8 most popular brands to the 10 most popular brands couldn't "increase greatly" the number of computers sold.
Intern
Joined: 27 Jul 2009
Posts: 4

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27 Jul 2009, 17:02
My initial reaction led me to choose B, although E became tempting after I read one of the other replies. Ultimately, I went back to B because if brands 1-7 account for nearly all of the sales, then adding more models isn't likely to increase sales greatly.

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This is not a quality discussion. It has been retired.

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Re: Computer Selling &nbs [#permalink] 27 Jul 2009, 17:02
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# Approximately two hundred brands of personal computers are

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