GMAT - Analytical Writing Assessment (AWA) Practice 4

Analysis of Argument

"DKLA was the innovator in the market for casual women's business apparel. Smith & Co. was once the leader in that market with $2 billion in sales until styles changed and Smith & Co.'s clothes went out of fashion. DKLA can also be expected to fail, especially because the market for casual women's business apparel is saturated."

How would you rate the accuracy of the above statement? Support your position with reasons and examples.


The casual women's business apparel competition nowadays is really tight. Companies come and go and only the innovative can last longer. They are trying to get a big part of a market pie which is growing less quickly than the number of the companies.

It once happened to Smith & Co.'s that the company had been a market leader after reached $2 billion in sales. In almost cases, the comfort zone have made big players forgot to create newer, cheaper or better things. Like in honey moon, they don't realize the existence of others. While they take a rest, newer and smaller companies are innovating. One of the companies is DKLA. DKLA style launched in the market just as the Smith & Co.'s clothes went out of fashion. That was when the king crown had been transferred from a sleeping-giant to a skinny rabbit.

Who can be sure that DKLA will always be at the peak? Nobody. According to Peter Drucker statement, there is no certainty, the only certain is the uncertainty it self. As long as DKLA's value of innovation is worked harder in the rest of the company, there is a possibility that it would be last longer.

The same story happened in the computer business. Years ago, names as IBM and Apple are well known as global leaders of information technologies. But, nowadays, they are passed by new comers such as Google and Yahoo.

As a conclusion, the statement above somehow has a minimum accuracy. What can make a company last longer is not only the growth-size of the market. But there is one more important value that can help company to last, it is innovation.