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.


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…