CR- Conclusion

Q. The number of competing service providers in the telecom sector is set to shrink from double digits to just five players. From more wholesome slices of the customer pie to more bang for the buck in a highly capital intensive business, the merged entities including Vodafone Idea Ltd. ought to be happy with the way things have panned out. Yet the situation on the ground is far from ideal. The intensity of competition with the entry of Jio has left the incumbents battling furiously to protect their turf, with tariff reductions to match the newcomer’s ‘no prisoners’ approach.

The author of the above paragraph is most likely arguing for the conclusion that:

  1. Increased competition can keep companies from realizing the benefits of having few competitors left.
  2. After benefitting from the consolidation that took place, Jio has been able to increase the competition in the telecom sector.
  3. While telecom companies are facing an unprecedented threat, they are in a position to realise strategic gains.
  4. Price competition could neutralize gains that telecom companies may have realized post the sector’s consolidation.

See our previous ‘Questions of the Day’:  

Verbal Question of the Day: 38

Verbal Question of the Day: 37

18 comments

  1. The answer should be option 4.Price competition from Jio neutralises the profitable position the companies are in.

  2. Prabhat Sir,could this be possible that each question of the day comes with a time window.Because one can solve the question at home taking a lot of time which may be not efficient from exam point of view.So can any time frame be accommodated with every question.?It would be highly useful to know the time in which the question is to be solved.

    1. TG.Prabhat

      That’s an interesting suggestion, Shubhra. I’ll bring it up with the management. You’re right- actual testing conditions will most definitely not afford an open-ended time window to candidates. I’ll get back to you with a resolution 🙂

    2. TG.Prabhat

      I have discussed your suggestion, Shubhra. The purpose of the ‘Question of the Day’ is to make students think and learn. Putting a psychological boundary by applying a timer to the question will be incompatible with this objective. Even if you take extra time over these questions, it’s all right. Make sure that you increase your conceptual knowledge by doing these questions. This will enable you to do better in mock tests (of which there are many) and actual exams. Applying this approach, you will also notice an organic decrease in the time you take to solve the ‘Questions of the Day’.

  3. Dhruv Agarwal

    The answer is 4.
    Because only it talks of the price advantage Jio had got over others, giving it an upper hand over other competitors.

    1. TG.Prabhat

      Correct, Dhruv 🙂
      Do take a look at the answer’s explanation in my comment below.

  4. Mayank Khanna

    4
    Reason
    So the passage talks of 2 main points- (1) The merging of companies which helped the major players to increase customer base and revenue in the business ( good thing)
    (2) The entry of Jio which gave them stiff competition and they had to reduce prices to compete with Jio.

    Based on these it seems the author says things were not as good as they were thought because of Jio.

    1) it could be but it is not the main idea.
    3) They are facing threats and passage talks about the problem and not benefits
    2 and 4 are close
    2- it sounds like the main idea is Jio got the benefits of consolidation which is not.
    4 – Price competition neutralize gains of incumbent firms.

  5. Prabhat sir ,how can I reach you at the centre?I do not have any contact or mail id to reach you for queries apart from the question of the day.

    1. TG.Prabhat

      You can post your queries on the forum on this website itself, Shubhra. That will benefit other students as well. Add a ‘New Question’ under the topic that you have a doubt from. I’ll post a solution to it asap. I’m also available at the centre typically between 1 and 6 pm, except on Sundays.

  6. TG.Prabhat

    5 correct answers out of 7. Though, only 7 answers received for this question. I’ve managed to vex many of the usual visitors. (I’ve not made more than two assumptions to reach this conclusion, so it’s all right. 🙂 )

    The answer is 4. The main point of the paragraph is the situation on the ground not being ideal for telecom companies due to the price competition that is taking place with the entrance of Jio.

    Option 1 uses inductive logic to reach a general conclusion, which may or may not be true.

    Option 2 is an unsupported causal statement.

    Option 3 focuses on a peripheral point that telecom companies are in an advantageous position.

    A juicy parajumble for today-
    http://tathagat.mba/verbal-question-of-the-day-40/

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