GMAT Essays (AWA)

Arguement essay
"Davis Technologies, a computer-chip maker, could solve its problem of declining sales by dropping its prices. This would make Davis better able to compete in the highly competitive computer chip market. The sales of chips would increase and this would substantially boost Davis' market share."
How would you rate the accuracy of the above statement? Support your position with reasons and examples.


Reducing prices can lead to an increase in sales of a product. This is what the author is propogating. The author claims that by reducing prices of its chips, Davis Technologies will be able to compete better in the computer chip market. Though this claim may well have some merit, the author presents an arguement that is based on questionable premises and assumptions. Therefore it is difficult to accept the argument as valid.

The primary issue with the argument is that the author assumes that the declining sales of Davis Technologies' chips is due to its price. It does not take into account other factors that could have led to a drop in sales. For example, it could be possible that the chips made by Davis Technologies are of inferior quality as compared to other chips in the market. Or maybe Davis Technologies has a growing reputation in the market of providing poor after sales support and customer service. These could be reasons why people are shying away from buying chips made by Davis Technologies. It could also be possible that the economy is going through a recession and the general market condition is poor. Even the sales of other chip manufacturing companies is decreasing. If that is the case, further lowering the prices may lead to greater losses.

The author claims that sales of chips would increase if the prices are reduced. This claim is not supported by any evidence. The author does not provide any information about the basis on which this claim is made. Did Davis Technology do something like this successfully in the past when its sales were dropping? Or has a similar strategy proved successful for other companies in this industry? Will the customers receive a sudden reduction in prices favorably or will it make them suspicious about the product? All these questions need to be answered before a conclusion can be drawn about the effectiveness of the strategy of reducing prices.

Though there are several issues with the author's reasoning at present, with research and clarification, he could significantly improve his argument. Research about the market condition, reasons for the declining sales etc. will definitely provide more backing to his arguement.

In sum, the argument is based on unsubstantiated assumptions because of which it cannot be accepted as is. If the author hopes to truly change the readers' minds on the issue, he would have to largely restructure the argument, clearly explain his assumptions and provide evidentiary support.

Hey,

You have done a terrific job at putting the essay together- assumptions, gap analysis, flawed reasoning, etc. gels into your arguments.

I would be interested to know how you approach the Essays and how you dissect them?

Indeed a 5.5 or above. Just a caution though, avoid labeling the author as "he/she." Don't give the evaluator any opportunity to point out that you're biased in your opinion. Just a word of caution.

Cheers,
kaha81