GMAT Reading Comprehension Passage: Politics (Market Share and Innovation)

Market Analyst: F’s entry into Mirrorless Camera began in 2015 with the release of XG1 Cameras. Unlike N and C, F was two years late, but the nostalgia of the 80s film camera revived the brand among 40+ year old. The executives at F found it comforting to gain 15% market share in the APS-C mirrorless camera market and the Founder’s son – Mr Nakomota, revived an old Japanese mantra of iteratively improving the camera after a thorough ground study.

However, with the introduction of Full Frame Mirrorless camera, the competitors began pushing the reasonably well off 40+ year old to models that offer better focusing, image stabilization and superior performance in low light. By stubbornly insisting that “We will never go full frame”, Mr Nakomota is taking a stand to avoid cannibalizing F’s existing APS-C cameras. A similar strategy had helped F outlive K which didn’t have any transitioning strategy for the 21st century when the world moved away from Film to Digital camera. In 2012, K filed for bankruptcy whereas F is gaining a loyal following due to their superior color science.

The honeymoon period might not last long as C and N are planning to introduce Full-frame mirrorless camera for the same price point as F’s mirrorless APS-C camera, enticing F’s user to make the switch for noiseless photos at low-light conditions.

Q) What is the tone of the Market Analyst regarding F’s plan not to enter the Full-Frame camera market?

a) Joyful but Optimistic
b) Hopeful but Cautious
c) Cautious and Pessimistic
d) Joyful but Angry
e) Angry but Optimistic

Q) What does the author mean by “The honeymoon period might not last long.”

a) F might go bankrupt if they abandon the APS-C camera market
b) F’s entry into the mirrorless camera is not good enough to sustain continued success
c)  F’s ardent fans might switch to a better offering
d) F’s transitioning strategy is not suited for the current market
e)  F’s leadership might face stiffer competition from activist investors

Q) According to the author, why can’t F enter the Full-frame mirrorless camera market?

a) F would introduce products that would compete with their previous models
b) F does not have the technology to switch from APS-C to Full-frame mirrorless camera
c) Adapting too quickly to changing market condition could lead to costly mistakes
d) The company’s vision is set on learning slowly from the ground before embracing major changes
e) 40+ year old prefer APS-C camera over Full-frame mirrorless camera

Q) The Market Analyst firmly believes that users would switch from APS-C mirrorless camera to Full Frame mirrorless camera because of

a) Lower Resolution
b) Low-Light performance
c)  Frame Size
d) Price Point
e)  Features

Find out the answer to this GMAT Reading Comprehension Passage on Market Share and Innovation