GMAT Issue – Competition is beneficial (How to write GMAT Argument Essay Example)

Another from GMAT Issue Archive:


“The presence of a competitor is always beneficial to a company.  Competition forces a company to change itself in ways that improve its practices.”


Discuss the extent to which you agree or disagree with the opinion stated above.  Support your views with reasons and/or examples from your own experience, observations, or reading.


The author believes that the presence of competitor is always beneficial because it forces a company to improve continuously. There are many circumstances in which this statement holds true. For example, improvement in product, services,delivery of the goods, continued research and development, etc… However there are many circumstaces where the presence of competitor is not so beneficial. For example, presence of an established competitor in a market where a new company wants to enter. However, after a careful consideration I believe the competition is always beneficial to the company.


First, the comptition makes the company always on a lookout for improvement opportunities in various departments. If the company doesn’t act as quickly as the  competitor then there are chances to loose market share and hence a dip in profit. This way it helps company to stay agile to changing market and customer requirments. For example, in consumer toothpaste market the presence of several major players make it impossible for any one of them to become complacent and it always helps them to do continuous introspection in the way they manage processes and practicies inside the comapny. This introspection can force them to change the unsuccessful or incompetent practices.


Second, the competition makes the company invest more into the research and development and innovation to come out with better products for consumers. For example, we have seen consumer electronics companies to present new and superior quality of TVs years after years. Such strategy always helps them to stay ahead in the game.


However, the competition can also be detrimental to some companies in some scenarios. For example – if there are too many competitors in a market such as refrigerator market, it becomes incresingly difficult for the companies to meet shareholder expectations on return. Such fierce competition forces the companies to cut the prices and profits which may lead them to a difficult financial position. In such cases cosolidation of market is more required than entry of another competitor.


Another example where the competition is not so helpful is where there is only one significant player enjoying a monopoly. In such case it becomes increasignly difficult for the new player to present it products and earn profits. For example, it would be difficult for a new retailor to enter in US market and compete with Wal Mart. The new retailor would have hoped that Wal Mart was not present in market so that new retailor doesn’t need to compete with price of Wal Mart which buys goods in bulk!


However from a higher level perspective it has been observed that a competitor in the market makes the company thriving for better results, products and earning. Sometimes only such tough competition has given birth to the innovations which has led to revival of several multi-nationationals such as Appel with iPod. Compe. So competition is a boon to the company and the market in which it works.


Updates – Received 6.0 in AWA in Offical Score Card


I got my official score card from GMAC. I got 6.0 in AWA. I am happy to see that score because I have heard some of the ivy schools do look for a good show in AWA. I have posted my last few essays before the GMAT for you all to review. Please share them if you find them useful.

More later…

[Updates: Please check out my blog posts of GMAT AWA Arguments and GMAT Issues templates]

Issue – Redevelopment Proposal

This was the last essay before my GMAT.

Although the redevelopment proposal for blighted inner-city neighborhood has promoted criticism from senior citizens, advocates of low and middle income housing, and community residents fearful of inconvenience or even displacement, it promises to create not only a number of upscale apartment buildings but also numerous construction jobs as well.


The issue of redevelopment of blight inner-city neighborhood is often seen as controversial and has been a topic of debate in many developing areas in either developed countries or developing countries. There are some circumstances in which the criticism has truth. For example: displacement of current owners of old property without providing a new better housing. On other hand there are many circumstances which lead to redevelopment of old properties. For instance: when a city is undergoing a makeover to provide better infrastructure. However, after careful consideration, in my opinion, the redevelopment often brings more benefits than problems. I have mentioned two points in following paragraphs to support my opinion.

With ever growing human population and expanding global economy bigger and better infrastructure needs are seen. Since a city can not grow beyond the available land space it has and people often want to stay close to heart of city as much as they can, it presents a strong case to redevelop the old inner-city infrastructure which may have inadequate infrastructure capacities and build upscale apartments that can house more people and more businesses. This will provide much needed infrastructure to fuel the growth. An appropriate example for this would be Sanghai redevelopment, which led to incredible growth of the city. 

Redevelopment provides not only new and better infrastructure but also new job opportunities. For example, whenever a new construction project starts a lot of construction jobs is created. A plethora of jobs of other dependent industries is also created. When bigger companies move to such infrastructures more high paying jobs are also created. So, overall new employment opportunities are also by-product of redevelopment.  

However, there are few concerns with almost each redevelopment proposal. These concerns are related to all those present owners, such as senior citizen and low-income families, which are staying at such premises since long. In many cases it is seen that a appropriate new housing facilities is not given to these people when redevelopment takes place. Many people loose their businesses on which their earnings are depended. As long as such needs are taken care while redevelopment is taking place, it will prove more beneficial to community overall. 

In a nutshell, after scrupulous deliberation, I believe redevelopment should be encouraged. While it may create some discomfort when people have to move from their current houses or businesses, in long run such redevelopment is often more beneficial than detrimental. Naturally, redevelopment proposal should be accepted.


Issue – Protecting Consumer

Consumers need to be protected from companies that make deceptive claims in their advertising. However companies should always be allowed to make truthful claims, even if those claims could be misunderstood by some customers

Author states that consumers should be protected from deceptive advertisements but at the same time agrees to allow companies to produce such deceptive advertisement as long as their facts are true. In my opinion, the author presents a self contradicting opinion in two sentences. If consumers are to be protected from deceptive advertising then companies should be refrained from using truthful but deceptive facts. 

For example, several toothpaste manufacturers claim to be number 1 in market and air such advertisements on TV, radio and internet. However they never specify on which basis they claim to be number 1. Companies do not specify whether their claim is based on market share. They do not specify whether results of survey include all strata of society. Consumers usually get attracted by such boastful claims and end up buying product of such companies. Companies can claim that their facts were true however less quality product hurts consumer regardless. Hence, the author’s first statement is contradicted. 

Another example, several electronic appliance companies advertise products with guarantees up to 5 years. However they never specify the tens of conditions that apply before consumer can avail such guarantees. Unaware of such conditions many consumers buy the products. When the products malfunction and consumers claim for the benefit of the guarantee the companies refuse to comply citing numerous conditions in agreement. Here too, I agree that companies did include the conditions in agreement but they never specified conditions in advertisements that enticed the consumer to buy products. Again the purpose of protecting consumer is defeated. 

In addition, the companies often advertise products and services with their starting price range excluding the several optional services charges. For instance, almost all major car manufacturers shows advertisements of their car models with full accessories and uses these accessories to claim superior than the other cars in market, often at cheaper price! However when a consumer goes to buy a car he realizes that all the accessories shown in advertisement do not come with original model and he has to pay another few hundred dollars to buy his dream car. 

Each of the abovementioned instance shows that if companies are allowed to make deceitful yet truthful claim, it’s more likely to harm the consumer in longer run. Such permission, as stated earlier, contradicts the first statement by the author. Therefore, in my opinion, the companies should not be allowed to make such misleading claims that can hurt the consumer. 

AWA Issue – Selfish Action

I wrote this almost 3 weeks before GMAT.

Human nature detects that every action, no matter how selfless it appears, is inspired by a selfish reason. 

The author states that every action is inspired by a selfish reason, no matter how selfless it appears and he suggests that it’s human nature to act selfishly. However, in my opinion not every human action can be termed selfish just because it’s one’s natural tendency to think about oneself almost all the time. 

There are several examples of servants of mankind which can sufficiently suggest that they sacrificed themselves for others. One such example is of Mother Teresa. At a very young age, she chose to be a nun and decided to dedicate her life to mankind. She went to India, an underdeveloped country in those days, and spent her whole life serving people with frightening diseases. When others were running away from such people because of fear of contagious disease she chose to treat them by staying with them. Would the author be able to justify her efforts and actions over the year as selfish? What did she get out of those efforts for herself? Her actions were selfless and inspiring for many others, at the least. 

Another example could be those countless soldiers on the front, especially those who work for United Nations. These soldiers have to go to mostly political unstable countries as a part of peacekeeping army and often have to sacrifice their life at the hand of mindless local strugglers. These soldiers are not fighting for themselves. They are not fighting for their country also. They are fighting for peace. They don’t get much out of this. Would the author term these actions selfish? 

In my opinion, one can also not term the actions selfish if those actions are basic need of human nature to live; especially if those actions are not aimed at harming others. To breathe is a necessity for a human being. It will not be logical if the author calls this as a selfish action. However, if the actions are aimed gaining something out a situation at the cost of others then they could be examples of selfish. 

In conclusion, as supported by two examples above not every action is inspired by a selfish reason. Not every actions done out of a need is a selfish action. So the author’s opinion is not valid for all circumstances and situations.

GMAT AWA Issue Template

Again, not the best of the templates but something that I followed to ease my AWA nervousness. [Also check out GMAT AWA Argument template]

The author’s issue that… is an interesting one and has been a topic of debate. The author states that… (Rephrase the statement). There are many circumstances in which the statement holds true (this one will be the statement for the side that you take). For example, [give an example in single sentence] On the other hand there are many circumstances in which the statement does not hold true (the opposite side). For example, [again only in single sentence] However, after a careful consideration, in my opinion, take your side. I shall present # of points to support my point of view.

Let me begin with example of [two words to represent the first example to support your point].

Another example,

In addition, 3rd example (optional)

However, the situation can be harmful in some scenarios or [any other opening sentence]. Now show your consideration for opposite side.

In a nutshell, after a scrupulous deliberation and as shown in previous paragraphs, I believe that [you can write a short version of the side you support]. While opposite view can be helpful in short term, your view can be really beneficial in long run. Statement…