Critical Reasoning

Established companies often focus on defending the market they currently dominate. As a result, they tend not to focus resources on potential new markets and tend to underestimate or ignore shifts in market dynamics. A clear case of this inward-looking strategy is

Which of the following best completes the passage?

a) a century-old paper manufacturer that adapts to the growing market for recycled papers by forming a committee to study ways in which it can effectively grow its business in this new market.

b) a diversified auto manufacturer that has historically led the market in sales of large trucks reacts to the recent increase in the market for fuel-efficient small cars by focusing on improving the fuel efficiency of its line of trucks in order to better compete with such smaller cars.

c)a diversified auto manufacturer that has historically led the market in sales of large trucks that consume significant amounts of fuel reacts to the recent increase in the market for fuel-efficient small cars by focusing on improving the look of its line of trucks.

d) a machine invented for use by auto manufacturers is now predominately used by airplane manufacturers as well as auto manufacturers.

e) a diversified auto manufacturer that has historically led the market in sales of large trucks reacts to the recent increase in the market for fuel-efficient small cars by minimizing production of large trucks and focusing on growing its business in the fuel-efficient small car market.


OA C

Source: Veritas Prep