Tuesday, April 29, 2008

The following was used as part of an internet advertising company's appeal to businesses:"Furniture Depot employed our internet advertising company"

I think the above statement is well deviced argument by an Internet adversting company's for appealing to its businesses.However,before we assume the argument to be true,it is worthwhile to analyse it from its assumptions.
The basic assumptions apparent here are that the businesses want to increase their profitablity and employing the help of internet advertising would boost the profitablity of the businesses.However,the argument has a major flaw in it line of reasoning which is that it has assume that increasing the sales by 10% over last Year's totals will lead to the increase in the profitablity of the businesses.However this may not be the case in all the scenario.For example,there may be a businesses which has the raw materails hit by the shortage of availabity and thus has led to increase in its price.This means the cost of manufacturing for the businesses has increase.so its profit margin has suffered.so inspite of the increase in sales,its profitablity may or may not have increase.
Also,the argument make a case that whatever the increase in sales of furniture depot has been,it is because of the help of the Internet advertising company.However,there may be several other factors as well which may have contributed heavily such as change in the lifestyle of the people,words of mouth spred by the other customer to the other prospective customer who might not even have saw that Advertising.
So the facts used by argument does seems appealing,the actual case may be different.

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