GMAT Essay Topic 494 - The following appeared as part of an article in the business section of a daily newspaper. "Company A has a large share of the international market in video-game hardware and software. Company B, the pioneer in these products, was once a $12 billion-a-year giant but collapsed when children became bored with its line of products. Thus Company A can also be expected to fail, especially given the fact that its games are now in so many American homes that the demand for them is nearly exhausted." Discuss how well reasoned . . . Etc.
Author: Prashant | Date: August 9, 2008 | Score:4.5 | => 5 or 6 Essays, Click Here <=
Firstly the author’s argument is based on the assumption that Company A would also follow the same marketing strategies that Company b used for it’s line of products, that finally lead to the failure of Company B. It is true that video game users get bored playing the same game again and again especially once they have attained the highest levels of all the games. However the time consumed in attaining the highest levels of all the games is more if the game is being used by a family. There would be someone or the other in the family who would be interested in playing the games in order to beat the higher score attained by someone else in the family.
Secondly the author fails to take into account that the games hardware and software can be upgraded to include new games. Once new games are included, the longevity of the game can definitely be increased. The cost incurred by the company in developing some new games on the same platform would considerably be less than developing a new gaming system. The company can therefore make some good money by selling off the new set of games at a considerable price. Existing game users would also prefer upgrading their gaming devices at cheaper prices to buying new systems at higher prices. The up gradation of the systems can be mode more user friendly by allowing users to connect the gaming system to the internet and download the new components. This would definitely enhance the possibility that the user would like to stick to same gaming hardware.
Finally the author fails to state all the reasons that could have led to the failure of company B, for example bad after sales services, high product costs etc. The author also fails to take into account the fact that Company A would definitely consider all the points that led to the failure of Company B. Once the reasons for the failure are known, it can be easier for Company A to try as far as possible to make sure that the same conditions don’t arise in their company that could finally lead to the debacle of the company. In conclusion I fail to agree with the author’s argument that if one company failed due to some reasons the other company would not take steps to prevent the same happening with them and let their company wave off.