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1 A product's design can be more valuable than
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13 Jun 2009, 08:27
1 A product’s design can be more valuable than the product itself. With the advent of the personal computer in the 1970s, the computer-manufacturing 5 sector, an industry then dominated by those giants able to afford incredibly specialized knowledge and to produce equally expensive products, suddenly found its brightest lights shining in the 10 garages of clever engineers. Large manufacturers responded slowly but eventually arrived at a lucrative solution: IBM developed its own personal computer and permitted other 15 manufacturers to copy its design in exchange for royalties. This move brought the computer giant’s greatest strength to bear—an enormous reserve of engineering brainpower—and 20 ensured its continued control over a broad stretch of the personal computer market. At the same time, the broad selection of IBM “clones” available brought prices down and ensured the 25 product’s mass-market appeal. The upstart companies that gave older manufacturers so much trouble to begin with soon found themselves in a difficult situation. Despite their innovative 30 operating systems, which converted computers from specialists’ tools into devices nearly as easy to use as toasters, these companies may not have reaped their full reward, as they have 35 jealously held onto exclusive rights to manufacture the machines that run the new systems. Only recently have these smaller companies begun to license their hardware designs and operating 40 systems, paving the way for clones of their own. Yet the young companies lag far behind both IBM and those software developers who have reaped huge rewards from the personal computer 45 bonanza, leading many analysts to wonder if the smaller companies’ machines will remain the expensive luxuries that they have become in the home-computing market.
1. According to the passage, which of the following resulted from “cloning” in the computer industry?
I. The failure of younger, smaller computer manufacturers to realize their full potential II. The creation of low-quality, low-cost home computers III. The introduction of specialization into the computer industry
I only
II only
I and II only
I and III only
II and III only
Archived Topic
Hi there,
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Re: 1 A product's design can be more valuable than
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16 Jun 2009, 08:38
IMO A i.e. only statement 1 is true as it is clearly mentioned in lines 32 - 35. Now statement 2 ir incorrect coz it is never mentioned that cloning resulted in low quality machines, rather the passage says that the price decreases after the introduction of cloning. Statement 3 is never mentioned in the passage the way it is mentioned here.. HTH
Re: 1 A product's design can be more valuable than
[#permalink]
16 Jun 2009, 11:33
IMO too A..
1) as its is mentioned in the passage that
" spite their innovative 30 operating systems, which converted computers from specialists’ tools into devices nearly as easy to use as toasters, these companies may not have reaped their full reward, as they have 35 jealously held onto exclusive rights to manufacture the machines that run the new systems."
the small companies failed to realize their complete potential
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gmatclubot
Re: 1 A product's design can be more valuable than [#permalink]