Hi everyone!
I took the GMAT Official Practice test #1 and am hoping to get some feedback on my AWA question. Thank you all so much!
"Motorcycle X has been manufactured in the United States for over 70 years. Although one foreign company has copied the motorcycle and is selling it for less, the company has failed to attract motorcycle X customers—some say because its product lacks the exceptionally loud noise made by motorcycle X. But there must be some other explanation. After all, foreign cars tend to be quieter than similar American-made cars, but they sell at least as well. Also, television advertisements for motorcycle X highlight its durability and sleek lines, not its noisiness, and the ads typically have voice-overs or rock music rather than engine-roar on the sound track."
Motorcycle X has manufactured motorcycles in the United States for much longer than foreign companies have. While the foreign company has almost cloned Motorcycle X and even sells their product at a lower price, the company has failed to gain market share from Motorcycle X. There are some theories for the failure, that the foreign motorcycle does not make the same loud noise as Motorcycle X. However, there are some flaws in the reasoning and the argument, overall, is weak.
First, Motorcycle X has been in the market for 70 years more than the foreign company. Therefore, there is more brand name recognition that would incentivize customers to continue purchasing Motorcycle X over a new brand that has not proven its value yet. For example, there is the well-known saying of "if it ain't broke, don't fix it," indicating that if something is already working well, there is little reason to try an alternative. Furthermore, many people are loyal to brands that they are familiar with and have used in the past. The famous Coke versus Pepsi debate shows such: the two products are almost identical; however, each side has its loyal fanbase that will refuse to buy the competitor's product because they are more used to their preferred brand.
Second, there is no information to compare the advertisements that the foreign company employs to the advertisements that Motorcycle X uses. It is entirely possible that a reason customers from Motorcycle X are not buying motorcycles from the foreign company is because they simply do not know that the foreign company exists. Without any information about the foreign company's current marketing plan, it is impossible to determine if Motorcycle X has an advantage because of its design and iconic noise or if their advantage comes from simply having a better marketing strategy.
Because Morotcycle X has been manufactured in the United States for the past 70 years, there is a third possibility that the market is already saturated by Motorcycle X customers and that existing motorcycle owners do not want to purchase another motorcycle. The foreign company, therefore, should conduct thorough market research to determine if there is even a viable market to try and sell in the United States, especially since foreign-made cars are successful. It may be that there is a higher demand in the United States for foreign-made cars and cars in general than there is for foreign-made motorcycles and motorcycles as a whole.
To strengthen the argument, there should be some discussion regarding current customer wants and trends, which could be found through conducting customer surveys on motorcycle preference. In better understanding what it is that the customer is looking for and what they prioritize when buying a motorcycle, including data on the importance of price, country or origin, television advertisements, engine-roar qualities, durability and sleeknessm, the foreign company can better pinpoint where their disconnects are from the customers that they are trying to attract from Motorcycle X.
Overall, the current argument that the lack of an exceptionally loud noise is a driver for the failure of the foreign company to attract customers from Motorcycle X could be improved upon. The foreign company's next steps to find the root cause should be to conduct both market and customer preference research to see if their dilemma is industry-wide or company specific. In doing so, they will be able to adjust their strategies accordingly, whether it be completely pulling out of the United States market or to run a marketing campaign to highlight the components of the foreign company's motorcycle that most appeal to customers.