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dimmak
Joined: 08 Sep 2017
Last visit: 04 Jun 2019
Posts: 54
Given Kudos: 185
Location: Colombia
Schools: Haas '21 (S) LBS '21 (A)
GMAT 1: 710 Q49 V39
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26 Jul 2018, 17:41
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A
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
55%
(hard)
Question Stats:
61% (02:01) correct
39%
(02:04)
wrong
based on 990
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History
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The Kapoor Meatworks has a virtual monopoly on expensive, gourmet delicacies. In order to expand their market, they intend to offer a budget line of less costly delicacies. Such a product is virtually unknown, and they realize that its success depends upon a heavy advertising campaign. They have decided to finance the advertising with the profits from their gourmet line.
Which of the following, assuming that each is a realistic possibility, would constitute the most serious obstacle to the Kapoor Meatworks' project?
A) The introduction of a budget line of delicacies completely undercuts the sales of the gourmet line.
B) At the start, the company spends more on advertising than it makes from sales of the budget line delicacies.
C) When the budget line delicacies grow in popularity, competitors enter the budget delicacies market and Kapoor does not have a monopoly in that market.
D) Many of the consumers who purchase the budget line are tempted to try the delicacies offered in the gourmet line.
E) Many of the stores that now carry Kapoor's gourmet line of delicacies are exclusive, and refuse to carry their budget line.
Which of the following, assuming that each is a realistic possibility, would constitute the most serious obstacle to the Kapoor Meatworks' project?
A) The introduction of a budget line of delicacies completely undercuts the sales of the gourmet line.
B) At the start, the company spends more on advertising than it makes from sales of the budget line delicacies.
C) When the budget line delicacies grow in popularity, competitors enter the budget delicacies market and Kapoor does not have a monopoly in that market.
D) Many of the consumers who purchase the budget line are tempted to try the delicacies offered in the gourmet line.
E) Many of the stores that now carry Kapoor's gourmet line of delicacies are exclusive, and refuse to carry their budget line.
26 Jul 2018, 18:24
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Carlgrc
Profit from gourmet line for advertising for budget line ...
All choices may be tempting but look for most serious obstacle for above
Choice A gives us a reason that the money may not be available for advertising, thereby effecting the project.
27 Jul 2018, 22:04
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chetan2u
Hi chetan2u
Can you please point whats wrong with choice E.
I felt that it seriously weakens the Argument as Kapoor's are ready for heavy advertising but there's no point in spending that much money as many stores refuse to carry the new budget line of less costly delicacies.
Is it because of the keyword Many.Meaning few stores may carry the new budget line.
