While researching a topic, a student has taken the following notes:Market disruption occurs when new technologies challenge established industries.Thi...
GMAT Expression of Ideas : (Expression) Questions
While researching a topic, a student has taken the following notes:
- Market disruption occurs when new technologies challenge established industries.
- This process often follows predictable stages of development.
- Netflix initially operated as a DVD-by-mail rental service.
- This model competed directly with traditional video rental stores.
- Netflix later transitioned to streaming video content online.
- This evolution ultimately led to the decline of physical video rental businesses.
The student wants to trace the progression of Netflix's market impact. Which choice most effectively uses relevant information from the notes to accomplish this goal?
Netflix evolved from DVD-by-mail service competing with rental stores to streaming platform that ultimately caused the decline of physical video businesses.
Netflix transitioned to streaming video content online, which led to the decline of physical video rental businesses.
Market disruption occurs when new technologies like Netflix's streaming service challenge established industries such as video rental stores.
Netflix initially competed with traditional video rental stores through DVD-by-mail service before becoming a streaming platform.
Step 1: Decode and Map the Passage
Part A: Create Passage Analysis Table
| Text from Passage | Analysis |
|---|---|
| "Market disruption occurs when new technologies challenge established industries." |
|
| "This process often follows predictable stages of development." |
|
| "Netflix initially operated as a DVD-by-mail rental service." |
|
| "This model competed directly with traditional video rental stores." |
|
| "Netflix later transitioned to streaming video content online." |
|
| "This evolution ultimately led to the decline of physical video rental businesses." |
|
Part B: Provide Passage Architecture & Core Elements
Main Point: Netflix exemplifies market disruption by evolving from DVD-by-mail service competing with rental stores to a streaming platform that ultimately caused traditional video rental businesses to decline.
Argument Flow: The passage establishes market disruption as a concept with predictable stages, then uses Netflix as a case study showing two key phases: first competing with rental stores through DVD-by-mail, then transitioning to streaming which ultimately led to the decline of physical video rental businesses.
Step 2: Interpret the Question Precisely
What's being asked? To trace the progression of Netflix's market impact - showing how Netflix evolved and what effects this had on the market.
What type of answer do we need? A chronological account that captures both Netflix's evolution AND its impact on the industry.
Any limiting keywords? "progression" suggests we need to show stages or development over time, and "market impact" means we need to show the effects on the industry, not just Netflix's changes.
Step 3: Prethink the Answer
- The right answer should show Netflix's evolution from its original business model to its current one - specifically from DVD-by-mail to streaming
- It should connect this evolution to market impact, showing how this progression affected the traditional video rental industry
- It should present this as a progression or sequence, not just isolated facts
Netflix evolved from DVD-by-mail service competing with rental stores to streaming platform that ultimately caused the decline of physical video businesses.
✓ Correct
- Shows complete progression: DVD-by-mail to streaming to market impact
- Captures both Netflix's evolution AND the resulting market effect
- Presents information chronologically as a progression
Netflix transitioned to streaming video content online, which led to the decline of physical video rental businesses.
✗ Incorrect
- Only shows the streaming phase and its impact
- Misses Netflix's initial DVD-by-mail stage entirely
- Trap: Students might focus only on the final, most dramatic stage
Market disruption occurs when new technologies like Netflix's streaming service challenge established industries such as video rental stores.
✗ Incorrect
- Focuses on market disruption as a general concept
- Uses Netflix as just one example rather than tracing Netflix's specific progression
- Trap: Students might be drawn to the broader conceptual framework
Netflix initially competed with traditional video rental stores through DVD-by-mail service before becoming a streaming platform.
✗ Incorrect
- Shows Netflix's business evolution but stops there
- Fails to include the market impact
- Trap: Students might think showing Netflix's evolution is sufficient, missing the "market impact" requirement