An online media company plans to increase its share of market by deeply discounting its subscription prices for the next two months. The discounts will cut into profits, but because they will be heavily advertised, the company expects that they will attract buyers away from rival providers of similar media. The company foresees that, in the longer term, customers initially attracted by the discounts will remain loyal subscribers.
In assessing the plan's chances of achieving its aim, it would be most useful to know which of the following?
A - Whether the company's competitors are likely to respond by offering deep discounts on their own subscriptions
B - Whether the advertisements will be created by the company's current advertising agency
C - Whether some of the company's subscription options will be more deeply discounted than others
D - Whether the company will be able to cut costs sufficiently to maintain profit margins even when the discounts are in effect
E - Whether an alternative strategy will enable the company to enhance its profitability while holding a constant or diminishing share of the market
OA - A
I am confused between A and D. both seems legit as either of them will impact on plan for being successful. Let just say that a deeper discount is given by the competitors and still many factors can be involved to make them have profit. while if D is true then game is over. if discounts are in effect then also we are making profits irrespective of scenario. Help plz !!!
In assessing the plan's chances of achieving its aim, it would be most useful to know which of the following?
A - Whether the company's competitors are likely to respond by offering deep discounts on their own subscriptions
B - Whether the advertisements will be created by the company's current advertising agency
C - Whether some of the company's subscription options will be more deeply discounted than others
D - Whether the company will be able to cut costs sufficiently to maintain profit margins even when the discounts are in effect
E - Whether an alternative strategy will enable the company to enhance its profitability while holding a constant or diminishing share of the market
OA - A
I am confused between A and D. both seems legit as either of them will impact on plan for being successful. Let just say that a deeper discount is given by the competitors and still many factors can be involved to make them have profit. while if D is true then game is over. if discounts are in effect then also we are making profits irrespective of scenario. Help plz !!!
