Citing a year-long downward trend in global sales of personal computers, the CEO of Farmer Computer has announced that

[BTGmoderatorDC]

Citing a year-long downward trend in global sales of personal computers, the CEO of Farmer Computer has announced that his company will shift much of its emphasis from PC production to corporate networking systems. Personal computers are now much more able to adapt to new networking software, but the software itself must be updated frequently.

Which of the following, if true, casts the most serious doubt onto this new strategy?

A. The Farmer brand name is well respected in the computer industry. but few industry analysts believe that Farmer will have the same success with networking.

B. Sales of Farmer PCs have increased dramatically over each of the past six quarters, and they show no signs of slowing down.

C. A slew of new competitors in the PC production business will inevitably result in widespread cost cutting to preserve market share.

D. Sales of cellular phones and other mobile communications are expanding at three times the rate of networking companies.

E. Two other companies have approached Farmer with the prospect of a three-way merger to form a dominant company that would own market share in the PC business.


OA B

Source: Princeton Review