2. The following appeared in a memo from the new vice president of Sartorial, a company that manufactures men's clothing.

"Five years ago, at a time when we had difficulties in obtaining reliable supplies of high-quality wool fabric, we discontinued production of our deluxe alpaca overcoats. Now that we have a new fabric supplier, we should resume production. This coat should sell very well: since we have not offered an alpaca overcoat for five years and since our major competitor no longer makes an alpaca overcoat, there will be pent-up customer demand. Also, since the price of most types of clothing has risen in each of the past five years, customers should be willing to pay significantly higher prices for alpaca overcoats than they did five years ago, and our company profits will increase."


At a first glance the argument for introducing deluxe alpaca overcoat once again in the market towards company’s profit is an obvious conclusion. But there are some assumptions that make the argument weak.

As mentioned by the author that the company have a new fabric supplier. Moreover they believe that the new fabric supplier is very reliable for supplying of high-quality wool fabric. Well there is no valid proof for the above making sentences. Lack of sufficient data could not prove the above argument. It should be better if author use some relevant examples for this statement.


Secondly, the author describes that the company’s major competitor no longer makes deluxe alpaca overcoat. So the company has a huge chance to make a success. But there might be a different cause for the failure of their competitor. The cause might be due to lack of demand of that deluxe alpaca overcoat. If that is true then it will be a loss for that company. So there is no valid data, why the opponent no longer makes clothes.


For making profits any company needs to have a good marketing strategy. Moreover the higher authority should be more responsible for that product. If the corresponding company doesn’t have then it can’t make a profit rather than loss.