"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 su

The statement claims that decreasing prices will incline sales of chips of Davis Technologies and will boost this company market share. The conclusion, based only on one assumption, is unconvincing and has several flaws.

Firstly of all, it is not stated what competitors made in order to attract more customers and why they prefer to buy in these companies in contrast to Davis Technologies, that is why a problem may be in wrong promises of marketing ads, but not in prices. This issue has not been work out, consequently, the decision to drop the price is unfounded.

Secondly, this statement does not provide any statistic information, any reviews and any researches in order to look at the problem from different sides. Why does the company sure that the quality of their products is the same before the falling sales?

Finally, there is no information about risks that company have calculated as it is impossible to know if company drop prices, will it be economically effective and can the firm survive in the highly competitive computer chip market, it is also not stated.

To sum up, the statement is unwarranted and unsubstantiated because it is not supported by statistics and researches which could help to make right decisions.