Source Veritas :
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 smalled 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.
Complete the passage
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- shovan85
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IMO B
The passage says that the leading company in old business tries to hold back their top position and do not try to switch market. The options which are adapting or switching to new market can be discarded so A, D and E.
Out of B and C, C is improving the looks of the truck with respect to fuel-efficiency.
Hope Its correct
The passage says that the leading company in old business tries to hold back their top position and do not try to switch market. The options which are adapting or switching to new market can be discarded so A, D and E.
Out of B and C, C is improving the looks of the truck with respect to fuel-efficiency.
Hope Its correct
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IMO : C
I see in C that the truck maker instead of reacting to minimizing consumption of fuel in its truck is busy improving looks of the truck...thus they are not responding to market change of fuel-efficient vehicles.
I see in C that the truck maker instead of reacting to minimizing consumption of fuel in its truck is busy improving looks of the truck...thus they are not responding to market change of fuel-efficient vehicles.
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Saurabh Mahajan
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B IMO.....I think the truck manufacturer tries to improve the truck sales and not concentrate on the entry into newer markets.....[/spoiler]
- gmatrix
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my pick C
A clear case of this inward-looking strategy is......
A diversified auto manufacturer that has historically led the market in sales of large trucks that consume significant amounts of fuel reacts to recent increase in the market for fuel-efficient small cars by focusing on improving the look of its line of trucks.
fuel efficiency neglected and looks prepped......
A clear case of this inward-looking strategy is......
A diversified auto manufacturer that has historically led the market in sales of large trucks that consume significant amounts of fuel reacts to recent increase in the market for fuel-efficient small cars by focusing on improving the look of its line of trucks.
fuel efficiency neglected and looks prepped......
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