Question:

A new apparel store has been opened by a telecom company XYZ, from which customers have very high expectations.
Which of the following statements can be inferred from the above statement ?

  • Apparel stores were previously operated in telecom industry only
  • Expansion is the best strategy to have competitive edge in the market
  • To be successful in an expansion, one needs to be a leader in telecom industry
  • XYZ has already established brand name in the market through its telecom business
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The Correct Option is D

Solution and Explanation

To solve the given logical reasoning problem, we need to infer which statement logically follows from the initial information provided regarding the opening of a new apparel store by telecom company XYZ.
The problem states: "A new apparel store has been opened by a telecom company XYZ, from which customers have very high expectations."
First, let's break down the core components of the provided statement. We know:
  • XYZ is a telecom company venturing into the apparel industry.
  • Customers have very high expectations for the new apparel store.
Next, we'll evaluate each given option to determine which can reasonably be inferred:
  • Option 1: "Apparel stores were previously operated in telecom industry only." This statement implies that telecom companies, in general, operate apparel stores, which does not follow from the provided information.
  • Option 2: "Expansion is the best strategy to have competitive edge in the market." While strategic expansion can be beneficial, it is not directly mentioned or implied in the provided information.
  • Option 3: "To be successful in an expansion, one needs to be a leader in telecom industry." This statement is more of a business hypothesis rather than an inference from the given scenario.
  • Option 4: "XYZ has already established brand name in the market through its telecom business." Given that customers have high expectations, we can infer that XYZ likely has an established brand and reputation, instilling confidence and high expectations in its customer base.
Therefore, the inference supported by the initial statement is:
XYZ has already established brand name in the market through its telecom business.
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