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Over the last 10 years the retail hardware business has seen massive

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Over the last 10 years the retail hardware business has seen massive  [#permalink]

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New post 04 Jun 2016, 21:08
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46% (01:48) correct 54% (02:07) wrong based on 225 sessions

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Over the last 10 years the retail hardware business has seen massive consolidation with many smaller hardware retailers going out of business. These changes have been attributed to the new category killer stores that have the volume and buying leverage to offer very low prices while maintaining healthy profit margins. However, this analysis is incorrect because even today, the so-called superstores only have a smaller share of the total retail hardware market.

Which of the following, if true, would most weaken the argument that the analysis is flawed?

A. Most of the larger customers for hardware purchases buy directly from manufacturers and thus do not participate in the retail market.
B. The superstores' heavy advertising of their lower prices has forced prices down throughout the retail market for hardware supplies.
C. Many of the 'category killer' stores have themselves gone out of business
D. Most of the hardware superstores sell a diversified base of goods, not just hardware.
E. The internet has created new openings for dozens of small internet-based hardware retailers.

Source - 800 score

Spoiler: :: Author's Comment
'Ques: Why is E not the answer? Detailed explanation will help.
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Re: Over the last 10 years the retail hardware business has seen massive  [#permalink]

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New post 04 Jun 2016, 21:22
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ruchi857 wrote:
Over the last 10 years the retail hardware business has seen massive consolidation with many smaller hardware retailers going out of business. These changes have been attributed to the new category killer stores that have the volume and buying leverage to offer very low prices while maintaining healthy profit margins. However, this analysis is incorrect because even today, the so-called superstores only have a smaller share of the total retail hardware market.

Which of the following, if true, would most weaken the argument that the analysis is flawed?


A. Most of the larger customers for hardware purchases buy directly from manufacturers and thus do not participate in the retail market.
B. The superstores' heavy advertising of their lower prices has forced prices down throughout the retail market for hardware supplies.
C. Many of the 'category killer' stores have themselves gone out of business
D. Most of the hardware superstores sell a diversified base of goods, not just hardware.
E. The internet has created new openings for dozens of small internet-based hardware retailers.

Source - 800 score

'Ques: Why is E not the answer? Detailed explanation will help.


Hi Ruchi,

To answer the Q, we got to know what we should weaken..

Over last 10 years, New super markets have forced small retailers out of business as supermarkets can afford lower prices due to bulk buying. However, this analysis may not be true as the share of these supermarkets is considerably lower in overall market..

Now lets see why E should not be the answer-
E. The internet has created new openings for dozens of small internet-based hardware retailers.
We are not talking of internet based retailers but the regular small retail businesses. The Choice is actually OUT of scope..

lets look at the correct answer - B
B. The superstores' heavy advertising of their lower prices has forced prices down throughout the retail market for hardware supplies.
This tells us that may be the share of supermarket is very less in overall market BUT the choice tells us that the lower rates of supermarket has forced all small businesses to make their prices competitive and thus reducing the profit and affecting the business
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Over the last 10 years the retail hardware business has seen massive  [#permalink]

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New post 03 Jan 2018, 20:31
B is the answer b/c first, B connects directly with the argument.
At the same time, B strengthens the premise "killer stores that have the volume and buying leverage to offer very low prices "

There is one weird problem about this question. I think the responding of the argument to the analysis is flawed b/c the argument itself does not respond to the attribution of the analysis. In other words, "smaller share of the market" has nothing to do with "have the volume and buying leverage to offer very low prices."
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Re: Over the last 10 years the retail hardware business has seen massive  [#permalink]

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New post 07 Jan 2019, 17:46
Expert, please explain.
I don't see how E is out of scope when there is no reference to physical stores.
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Re: Over the last 10 years the retail hardware business has seen massive  [#permalink]

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New post 07 Jan 2019, 23:58
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philipssonicare wrote:
Expert, please explain.
I don't see how E is out of scope when there is no reference to physical stores.


hi

please note the following:

conclusion: However, this analysis is incorrect because even today, the so-called superstores only have a smaller share of the total retail hardware market.
Reasoning: These changes have been attributed to the new category killer stores that have the volume and buying leverage to offer very low prices while maintaining healthy profit margins.

Prethink: there Is some factor , that have attributed to the low profit for other retailers which has forced them to be driven away from retail industry.


Which of the following, if true, would most weaken the argument that the analysis is flawed?

B. The superstores' heavy advertising of their lower prices has forced prices down throughout the retail market for hardware supplies.--correct , provides a reason

E. The internet has created new openings for dozens of small internet-based hardware retailers.---this is irrelevant, even if this is true, it does not tell us how it has increased/decreased the retail industry of hardware....thereby it is out of scope
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Re: Over the last 10 years the retail hardware business has seen massive &nbs [#permalink] 07 Jan 2019, 23:58
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