It is currently 23 Sep 2017, 06:16

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Established companies concentrate on defending what they already have.

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Top Contributor
Moderator
Moderator
User avatar
G
Joined: 01 Sep 2010
Posts: 3349

Kudos [?]: 8763 [0], given: 1139

Established companies concentrate on defending what they already have. [#permalink]

Show Tags

New post 22 Jan 2017, 09:17
Top Contributor
4
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  45% (medium)

Question Stats:

63% (01:19) correct 37% (02:05) wrong based on 228 sessions

HideShow timer Statistics

Which of the following best completes the passage below?

Established companies concentrate on defending what they already have. Consequently, they tend not to be innovative themselves and tend to underestimate the effects of the innovations of others. The clearest example of this defensive strategy is the fact that __________.

(A) ballpoint pens and soft-tip markers have eliminated the traditional market for fountain pens, clearing the way for the marketing of fountain pens as luxury or prestige items

(B) a highly successful automobile was introduced by the same company that had earlier introduced a model that had been a dismal failure

(C) a once-successful manufacturer of slide rules reacted to the introduction of electronic calculators by trying to make better slide rules

(D) one of the first models of modern accounting machines, designed for use in the banking industry, was purchased by a public library as well as by banks

(E) the inventor of a commonly used anesthetic did not intend the product to be used by dentists, who currently account for almost the entire market for that drug
[Reveal] Spoiler: OA

_________________

COLLECTION OF QUESTIONS AND RESOURCES
Quant: 1. ALL GMATPrep questions Quant/Verbal 2. Bunuel Signature Collection - The Next Generation 3. Bunuel Signature Collection ALL-IN-ONE WITH SOLUTIONS 4. Veritas Prep Blog PDF Version 5. MGMAT Study Hall Thursdays with Ron Quant Videos
Verbal:1. Verbal question bank and directories by Carcass 2. MGMAT Study Hall Thursdays with Ron Verbal Videos 3. Critical Reasoning_Oldy but goldy question banks 4. Sentence Correction_Oldy but goldy question banks 5. Reading-comprehension_Oldy but goldy question banks

Kudos [?]: 8763 [0], given: 1139

1 KUDOS received
Manager
Manager
User avatar
S
Joined: 25 Jul 2015
Posts: 108

Kudos [?]: 126 [1], given: 51

Location: Thailand
Concentration: Entrepreneurship, Marketing
GMAT 1: 550 Q37 V28
GMAT 2: 660 Q47 V34
GMAT 3: 650 Q44 V35
GMAT 4: 680 Q49 V32
GMAT 5: 740 Q49 V42
GPA: 3.33
Reviews Badge
Re: Established companies concentrate on defending what they already have. [#permalink]

Show Tags

New post 23 Jan 2017, 01:39
1
This post received
KUDOS
carcass wrote:
Which of the following best completes the passage below?

Established companies concentrate on defending what they already have. Consequently, they tend not to be innovative themselves and tend to underestimate the effects of the innovations of others. The clearest example of this defensive strategy is the fact that___.

A. ballpoint pens and soft-tip markers have eliminated the traditional market for fountain pens, clearing the way for the marketing of fountain pens as luxury or prestige items

B. a highly successful automobile was introduced by the same company that had earlier introduced a model that had been a dismal failure

C. a once-successful manufacturer of slide rules reacted to the introduction of electronic calculators by trying to make better slide rules

D. one of the first models of modern accounting machines, designed for use in the banking industry, was purchased by a public library as well as by banks

E. the inventor of a commonly used anesthetic did not intend the product to be used by dentists, who currently account for almost the entire market for that drug.


A. clearly an opposite example, it is not a defensive strategy
B. irrelevant - does not follow the same line of reasoning of competitor vs. competitor
C. correct - shows competitor (new electronic calculator) vs. competitor (slide ruler) example
D. irrelevant - it's competitor vs. competitor, banking and public library is a bit too far-fetched to be competitors.
E. irrelevant - it's competitor vs. competitor
_________________

My GMAT Journey From 550 - 740

My application debrief to Kellogg '19

My MBA Blog

Kudos [?]: 126 [1], given: 51

Manager
Manager
User avatar
S
Joined: 14 Jul 2016
Posts: 53

Kudos [?]: 14 [0], given: 17

Location: India
Concentration: Strategy, Marketing
Schools: AGSM '20 (A)
GMAT 1: 650 Q48 V31
GPA: 3.5
WE: Analyst (Computer Software)
Reviews Badge
Re: Established companies concentrate on defending what they already have. [#permalink]

Show Tags

New post 23 Jan 2017, 10:31
carcass wrote:
Which of the following best completes the passage below?

Established companies concentrate on defending what they already have. Consequently, they tend not to be innovative themselves and tend to underestimate the effects of the innovations of others. The clearest example of this defensive strategy is the fact that___.

A. ballpoint pens and soft-tip markers have eliminated the traditional market for fountain pens, clearing the way for the marketing of fountain pens as luxury or prestige items
B. a highly successful automobile was introduced by the same company that had earlier introduced a model that had been a dismal failure
C. a once-successful manufacturer of slide rules reacted to the introduction of electronic calculators by trying to make better slide rules
D. one of the first models of modern accounting machines, designed for use in the banking industry, was purchased by a public library as well as by banks
E. the inventor of a commonly used anesthetic did not intend the product to be used by dentists, who currently account for almost the entire market for that drug.


Choice C correctly says that the manufacturer was defending the already existing slide rules without innovating.

Kudos [?]: 14 [0], given: 17

Top Contributor
Director
Director
User avatar
S
Affiliations: CrackVerbal
Joined: 03 Oct 2013
Posts: 512

Kudos [?]: 552 [0], given: 6

Location: India
GMAT 1: 780 Q51 V46
Re: Established companies concentrate on defending what they already have. [#permalink]

Show Tags

New post 27 Jan 2017, 22:57
Top Contributor
three things that established companies do -
1. Concentrate on defending what they have.
2. Not innovative
3. Underestimate the effects of others' innovations.

the correct answer must parallel the reasoning above-

Option A - Incorrect.
Innovation need not necessarily be coming up with a ground-breaking product. It can also be through innovative marketing and positioning the product.
Hence, this does not agree with point #2.

Option B - Incorrect.
No comparison between the company's products to an innovative product from competitors.
Highly successful does not mean that the company was not innovative.
Hence, this does not agree with points #2.

Option C - Correct Answer.
trying to make better slide rules (Point #1).
not innovative because they did not introduce new technologies but defended the old one.
By doing this, they underestimated the effects of others innovations. Hence, they were no longer successful(point #3).

Option D - Incorrect.
does not address any of the three points.

Option E - Incorrect.
does not address any of the three points.
_________________

Enroll for our GMAT Trial Course here -
http://gmatonline.crackverbal.com/

Learn all PS and DS strategies here-
http://gmatonline.crackverbal.com/p/mastering-quant-on-gmat

For more info on GMAT and MBA, follow us on @AskCrackVerbal

Kudos [?]: 552 [0], given: 6

Director
Director
avatar
S
Joined: 12 Nov 2016
Posts: 743

Kudos [?]: 32 [0], given: 158

Re: Established companies concentrate on defending what they already have. [#permalink]

Show Tags

New post 19 Aug 2017, 21:36
carcass wrote:
Which of the following best completes the passage below?

Established companies concentrate on defending what they already have. Consequently, they tend not to be innovative themselves and tend to underestimate the effects of the innovations of others. The clearest example of this defensive strategy is the fact that __________.

(A) ballpoint pens and soft-tip markers have eliminated the traditional market for fountain pens, clearing the way for the marketing of fountain pens as luxury or prestige items

(B) a highly successful automobile was introduced by the same company that had earlier introduced a model that had been a dismal failure

(C) a once-successful manufacturer of slide rules reacted to the introduction of electronic calculators by trying to make better slide rules

(D) one of the first models of modern accounting machines, designed for use in the banking industry, was purchased by a public library as well as by banks

(E) the inventor of a commonly used anesthetic did not intend the product to be used by dentists, who currently account for almost the entire market for that drug


C illustrates the strategy described in the syllabus more precisely than A. A simply suggests that a product has become antiquated- but "B" is more accurate because a "once-successful" implicitly lost business because it tried to make more of the same product.

Kudos [?]: 32 [0], given: 158

Re: Established companies concentrate on defending what they already have.   [#permalink] 19 Aug 2017, 21:36
    Similar topics Author Replies Last post
Similar
Topics:
1 EXPERTS_POSTS_IN_THIS_TOPIC When the defendant in a trial chooses not to testify, the imhimanshu 4 22 Jun 2012, 12:03
1 Supporter / Defender assumption model ronniebassist 1 08 Dec 2016, 23:23
2 Studies have shown that companies that dominicraj 7 20 Sep 2017, 09:46
7 Many employees of GEOCOM, a company established five years guerrero25 4 16 Aug 2014, 01:08
1 Established companies often focus on defending the market they current aadikamagic 2 01 Nov 2014, 10:40
Display posts from previous: Sort by

Established companies concentrate on defending what they already have.

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.