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1.The following appeared in a memorandum written by the vice president of Nature's Way, a chain of stores selling health food and other health-related products.
"Previous experience has shown that our stores are most profitable in areas where residents are highly concerned with leading healthy lives. We should therefore build our next new store in Plainsville, which has many such residents. Plainsville merchants report that sales of running shoes and exercise clothing are at all-time highs. The local health club, which nearly closed five years ago due to lack of business, has more members than ever, and the weight training and aerobics classes are always full. We can even anticipate a new generation of customers: Plainsville's schoolchildren are required to participate in a 'fitness for life' program, which emphasizes the benefits of regular exercise at an early age."
In the vice president's argument, there are many reasons for the company to build their new store in Plainsville, such as, people there are more conscious of health, the health-related commodities sell well, the health club is in good condition, and there are anticipated customers in the area. It is reasonable at first glance, however, after a careful examination, there are several flaws in the argument.
First of all, albeit the citizens in Plainsville are more careful of their health, no one can assure that they could be the customers of the Nature's Way. It is possible that there are other companies selling the health-relating products, which would compete with the products of the Nature's Way. And it is more likely that, the products of the Nature's Way can't beat the products that have already existed in Plainsville, because the people there are more adaptive to those products, and even they may have found the products more suitable to them. They are not likely to buy a new brand, not only because the unfamiliarity, but because the unsuitability.
Secondly, even though people treat the products equally, it isn't certain that Nature's Way can be profitable in the area, which due to the habits of the citizens in the region. The people may like light exercising, such as jogging, amble and so on, rather than heavy exercising, which needs only common clothes, and doesn't necessarily buy specific clothes or shoes from Nature's Way. Furthermore, there is possibility that citizens in the region are not interested in the health-related food, which makes the sell of healthy food of Nature's Way remain low.
In sum, the argument is unsubstantial in evidence and undeveloped proved, thus we can't reach the conclusion that Nature's Way can get profits building their next new store in Plainsville. The argument will develop if it supplies us with more information of the other stores in the area. And it will further develop if it tells us the habits of the citizens there. |
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