GMAT Strategy

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."
The author of the statement states that The Bugle, a newspaper which is lower priced has been started five years ago. And because if this, another newspaper The Mercury has been declining by 10000 readers. The author thinks that the reduction in The Mercury's is because of the increment in The Bugle's circulation. And the author gives a solution to reduce the price of The Mercury below the price of The bugle, in order to increase the circulation of the latter. He believes the increased circulation of The Mercury will attract more business to busy advertising space in paper. This explanation is flaws according to the following reasons.
Firstly, reduction in the circulation of The Mercury may be because its price is more compared to that of The Bugle. There are many reasons as to why The Mercury's circulation has declined by 10000 readers. One of them is, may be the content of The Bugle is far better than the content of The Mercury. If the author had mentioned any evidences related to the content or any other factor in relation to both the newspapers, rather than only talking about the price, he would hab been right that price is only the main factor of this issue. Another reason could have been that The Bugle might have introduced new pages in its newspaper which is attracting the readers and hence increasing the circulation. The Mercury might not be having innovating editors, new ideas, and new theories so as to increase its circulation.
Secondly, the author mentions that it will only reduce the price until the circulation increases, nut did not mention about its plan after the increment. Here one question arises is that after the increment, if again the price has been increased and again the readers are decreasing. These fluctuating levels will surely not attract more businesses to buy advertising space in the paper as the author is expecting to be. It seems that the author is not honest with himself and his newspaper as he is only focusing on how to increase the newspaper's circulation rather than thinking about the satisfaction of its customers. One should be honest to himself and his work to reach any goal of life.
In conclusion, in order to increase the circulation of The Mercury, it has to look into other aspects relating to content, replacing editors, introducing innovative ideas, rather than being focused on price factor. Then surely, the mercury will be as successful as The Burger.