Greenmax’s CEO argues that international sales are vitally needed for

QUESTION

Greenmax’s CEO argues that international sales are vitally needed for the company to grow its market. Which of the following, if true, best supports her position?

A) Greenmax has found success with the fastest-growing market segment of energy drink consumers in the United States.
B) Greenmax has expanded beyond its original signature energy drink to offer several different varieties.
C) Greenmax’s advertising campaigns have been well received in the United States among its target market.
D) Greenmax has not been able to significantly grow its market share in the United States past a certain point.
E) Foreign markets have historically been less receptive to energy drinks than U.S. markets.

ANSWER

Answer: D
Explanation: D) If Greenmax has reached the maximum of its potential market share in the United States, then it makes sense for the company to try to expand its market overseas. Choice A suggests that Greenmax has the potential to dramatically increase domestic sales, which weakens the CEO’s contention that expanding in foreign countries is necessary to increase its market share. The number of Greenmax’s products (Choice B) and the success of its domestic ad campaign (Choice C) may be factors in the company’s overall success, but they’re not crucial determinants in whether Greenmax needs to grow its market into foreign countries. The lousy foreign market for energy drinks noted in Choice E weakens the CEO’s case that attempting to expand into those markets is a good idea.