Hello everyone on GMAT club, I notice that this might be a very old topic, but I'd really appreciate it if someone can check my essay for me, much thanks!!
Argument (just to repeat it again to avoid confusion):Due to the decline demand of the mining technology, all the related corporations are suffering from decline of profit and sales this year, including Blastcom Corporation. Blastcom Corporation is considering adopting one growth strategy: to shift some of the researchers from mining technology to the renewable energy technology, the demand for the renewable energy such as solar energy. Some of the prominent companies which market the renewable energy are successful in recent years. Therefore, it is guaranteed that company Blastcom will also be successful in the future by providing renewable energy.
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Concerning the recent decline in the mining demand, Blastcom Corporation oughts to reallocate their researchers from the mining technology to, what the mangers believed whose market will keep growing, the renewable energy technology. Although this strategy seems at first glance to be an obvious conclusion, it is rife with holes and several unwarranted assumptions. Adopting such a new strategy may not lead Blastcom to be more successful as the company expected for the following reasons.
Firstly, the argument relies on data that focused solely on this year’s statistics, that is, there is no evidence to support that demands for mining technologies will constantly experience a downfall and will never revive again. There could be other reasons that specifically resulted in this year’s decline, for instance, the drastic drop in the aviation industry due to COVID-19 a few years ago. Additionally, just as what is missing to prove that mining technology is moving towards its end of the product life cycle, there is also no evidence that substantiates a long-term up-warding trend in renewable energy technology, especially solar energy. Hastily jumping into developing solar energy could be risky without thorough market trend research since the tendency might once again shift from one source of energy to another soon.
Secondly, it could be true that solar energy is indeed a prospective industry that foresees stable growth in the future, however, it does not necessarily mean that assigning more researchers in solar energy development would make Blastcom a master of it. Perhaps there could be some key know-how that Blastcom is currently missing, or maybe their in-house researchers are all specialists in mining technologies. In such cases, no matter how much more effort Blastcom were to make, it will all end up in vain. It is better for Blastcom to evaluate their internal strength and weaknesses in prior to deploy any human resource changes.
Finally, even if Blastcom is confident in pulling off solar energy technology projects and can actually come up with commercializable products, they are still not guaranteed of future sales or profit. If renewable energy is really in the replacement of traditional mining energy, other energy companies might as well start shifting their focus to renewable energy technologies, and this will consequently make the competition a lot more intense. Solar energy is not something novel nor is it extremely hard to replicate, thus by the time Blastcom is ready to launch its newest product, there could be a ton of competitors in the battlefield already. Commonly known, the more intense the competition is, the less likely Blastcom will succeed in the market. Unless the statement includes information regarding Blstcom’s competitive advantage or a well developed plan to market its new technology (presumably the solar energy technology is successfully developed), one cannot assert that Blastcom will certainly be successful in the future.
As it stands, the notion to allocate more resources into developing solar energy is not conceivable due to the aforementioned reasons. To survive from the recent mining technology decline and to succeed in the future is Blastcom’s intention to shift its focus to renewable strategy. Yet, if the company is to convince the decision makers to accept the proposed strategy, a stronger argument should be made. After all, these decisions requires significant organizational changes and could create a massive sunk cost if it eventually failed.