GMAT Essays (AWA)

Argument -
The following appeared in an announcement issued by the publisher of The Mercury, a weekly newspaper:
"Since a competing lower priced newspaper, The Bugle, was started five years ago, The Mercury's circulation has declined by 10,000 readers. The best way to get more people to read The Mercury is to reduce its price below that of The Bugle, at least until circulation increases to former levels. The increased circulation of The Mercury will attract more businesses to buy advertising space in the paper.

Analysis -
The argument claims that the circulation of 'The Mercury', a weekly newspaper has declined by 10,000 readers due to the introduction of a competing low-priced newspaper, 'The Bugle'. The argument further states that the best way to increase its circulation to former levels is by reducing the price of 'The Mercury', below that of 'The Bugle', which will also attract more businesses to buy advertising space in the paper. The decision that the argument makes is not well reasoned due to the following points -
There may be additional factors which may have led to the decline of readers of 'The Mercury' like online news or news available in mobile applications which may attract more readers as they are more convenient and less time consuming to read. 'The Mercury' can therefore work on starting up its own online website or mobile application to attract more readers.
'The Mercury' should also not expect to get back its former reader by only reducing its price below that of 'The Bugle'. It should also try and analyze the kind of news published by 'The Bugle' and their way of strategizing it. For example, 'The Bugle' may publish news that is of more interest to the public in terms of education and entertainment.
The argument also finally assumes that the increased circulation of 'The Mercury' due to reduced prices will attract more businesses in to buying advertisement space in the paper. Now this may not necessarily happen. Other factors like the reputation of the paper, the advertisement word limit and content allowed and the frequency of the ad being published may attract more businesses.
Since the argument fails to consider the factors above for increased circulation of 'The Mercury' and concludes only on reducing its price to increase circulation, it is not very convincing and logically reasoned.