Please evaluate my first Argument Analysis

[sakri5]

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.

Essay:

Argument in discussion states that Davis Technologies is trying to improve the sales by reducing the prices alone in the highly competitive Computer Chip market. It further states that this increase in sales and improves the Davis' market share. Argument requires more supporting evidence to prove that reduction in price will boost up the sales.There could be several reasons to be attributed to the decline in sales. Below are the some other considerations to justify that reduction in the prices alone would not suffice for the increase in sales.

Since the competition is highly intense in the computer chip market, it is important to maintain quality of the products that Davis Technologies manufactures. More emphasis on the quality, durability of the products will certainly gain the brand name for the products produced by Davis Technologies which inturn will trigger the sales. For example, Dell computers tried to capture the market share by selling the computers for low prices. Eventually Dell lost the market share to HP since the quality of the Dell Products was poor.

Pricing of the products need to be competitive, since the market competition is intense in the computer chip market. Davis technologies has to sell the products at price that is competitive enough with the other companies, without compromising on quality. Attractive design of the products will help in improving the sales. Added to this would be well decorated show rooms. This will pull the crowds to the stores.

Better marketing strategies need to be deployed. Opening the show rooms in the highly crowded shopping malls will bring the public attention towards the Davis technologies products. Also Mass Media and internet need to be effectively used for better marketing the products. Market Reseach need to be done to find the cause for the loss of sales. Based on the finding appropriate statergy need to be deployed.

Based on the above points, my position is that reduction in the prices alone would not increase the sales. Reduction in prices along with improving the quality and better advertising and improvement in quality would help in the increase of sales.