Ausweiss sales initiative to spark price war?
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It's a buyer's market in the leisure clothing business, as market leaders Ausweiss take on newcomers N.E. wear, who have grabbed a substantial market share.
With sales booming in the leisure clothing industry, Ausweiss has decided to risk cutting costs aggressively, some even below cost, believing that higher sales will offset thinner margins. The company is perhaps gambling that N.E. wear will not be able to follow after its recent, expensive sales drive.
Ausweiss director Mike Herman told us ' leisure sales are the next big thing in the clothing industry. There is a new market out there with teens and young adults realizing that leisure clothing is excellent value for money. Ausweiss has chosen to make that market even more attractive by making its product still more affordable.' He denied that his company's price cuts were related to the sharp rise in N.E. wears sales, which he dismissed as 'a temporary phenomenon'.
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N.E. wear's Stephen Jones said that his company 'was relaxed' about the Ausweiss move. 'It's a sign that the market is sorting itself out. If Ausweiss is moving toward the cheap end of the market, this leaves N. E. wear alone at the quality end. ' He added that N.E. wear did not intend to revise its sales targets in the light of the Ausweiss move. 'We're working at close to capacity to meet demand, and it is showing no sighn of slackening.'
On the prospect of a price war he said 'they can win it. It's the quality war that counts.'
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Answers
1. A. 'Spark' means to start something that was ready to go off anyway.
2. D. The infinitive is often used by newspaper headlines for future tenses asa short form of 'going to'.
3. A. Ausweiss says that it wants to expand its market by making its clotes more attractive by making them more affordable.
4. C. As is suggested by the headline, the writer thinks that Ausweiss wants to regain market share from N.E. wear.
5. B. If something is 'temporary' it will not last long - as the subject is high sales by N.E. wear, the suggestion is that the high sales will not last - they will drop
6. B. N.E. wear has spent a lot of money promoting its clothing. Now it needs to get some of that back in sales, so it can't afford to cut prices.
7. B. The use of the word 'can' in this context means 'they can, but who cares?'
8. C. In fact N.E. wear is pretending that Ausweiss clothes are cheaper because they are poor er quality, and that they will keep their prices high, because their clothes are worth more.
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1. The words 'to spark' in the headline mean ..
a. start. 
b. surrender.
c. attack in.
d. is a sign of.
2. 'To spark' is in the infinitive to indicate ..
a. a subjunctive.
b. a present tense.
c. a zero conditional.
d. a future tense.
3. Why does Ausweiss say it is cutting prices?
a. To expand its market.
b. Because sales are booming.
c. To attack N.E. wear.
d. For thinner margins.
4. Why does the writer think Ausweiss is cutting prices?
a. To expand its market.
b. To make a buyer's market.
c. To attack N.E. wear.
d. For the cheap end of the market.
5. What does Mr Herman say about N.E. wear sales?
a. Ausweiss goods are cheaper.
b. N.E. wear sales will drop.
c. N.E. wear is too expansive.
d. He didn't comment.
6. Why can't N.E. wear cut prices too?
a. Their sales are too low.
b. It would cost too much.
c. Ausweiss did it first.
d. Their market is different.
7. What does 'they can win it' signify?
a. N.E. wear will lose the war.
b. N.E. wear doesn't care.
c. Ausweiss might win.
d. The customers will win.
8. How is N.E. wear reacting to the price cuts?
a. Starting a price war.
b. Changing their market.
c. Ingnoring them.
d. Giving press interviews.
ANSWERS
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