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Few well-established, old firms concentrate on protecting what they ha [#permalink]
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EncounterGMAT wrote:
Few well-established, old firms concentrate on protecting what they have already amassed. Thus, they rarely innovate and generally underestimate what consequences innovation by other companies will have. The best example of one such defensive strategy is the fact that _________________________.

Which of the following best completes the passage?

A. electronics and mass-produced gears eliminated the traditional market for pocket watches, clearing the way for marketing them as elegant, old-fashioned luxury items.

B. an extremely popular prefabricated house was introduced by a company that, several years before, had failed miserably with its product line of glass houses.

C. a once-leading maker of buggy whips responds to the new availability of stick shifts by attempting to make better buggy whips.

D. smoking pipes, originally designed for use by typically older, more traditional smokers of tobacco, are now bought mostly by young smokers of scented or flavored herbal blends.

E. the psychiatrist who invented the anti-inhibition drug MDMA did not mean for his product to be used by party-goers, who buy most of the drug now called “Ecstasy.”


We have to find a point that resembles the summary of the passage: An old firm that didn’t innovate & suffered as a result of another company that did.

A. electronics and mass-produced gears eliminated the traditional market for pocket watches, clearing the way for marketing them as elegant, old-fashioned luxury items.
Incorrect. This sentence is contradictory since the traditional pocket watch makers changed their marketing and thus innovated.

B. an extremely popular prefabricated house was introduced by a company that, several years before, had failed miserably with its product line of glass houses.
Incorrect. This sentence is wrong since it shows that this company that innovated itself after failure.

C. a once-leading maker of buggy whips responds to the new availability of stick shifts by attempting to make better buggy whips.
Correct. In this sentence, the old buggy whip firm does not innovate and simply focuses on what they already have despite the new availability of stick shifts.

D. smoking pipes, originally designed for use by typically older, more traditional smokers of tobacco, are now bought mostly by young smokers of scented or flavored herbal blends.
Incorrect. This sentence focuses on the consumer and not from a firm/company point of view. -Out of scope

E. the psychiatrist who invented the anti-inhibition drug MDMA did not mean for his product to be used by party-goers, who buy most of the drug now called “Ecstasy.”
Incorrect. This sentence focuses on the intentions of the producer/inventor. -Out of scope
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Re: Few well-established, old firms concentrate on protecting what they ha [#permalink]
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: Few well-established, old firms concentrate on protecting what they ha [#permalink]
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