A、The margins will be lower and the profit will be cut. B、Sales will drop rapidly, C、The profitability will be higher. D、The pro

W: Morning, Mr. Park.
M: Come here, Miss Li, I have something to talk to you.
W: What’s the problem, Mr. Park?
M: We need to define a new strategy which must be flexible enough to take account of changing market conditions.
W: I agree. Our main objective must be to gain market share, and to do this we must reduce prices.
M: So you are sure that if we reduce prices, our market share will increase?
W: Yes, I’m sure.
M: That might be true. But if we reduce our prices, our margins will be lower and that will cut our profits.
W: In short term it is right. But we can slowly increase our production and as the production is increased, we may cut unit cost.
M: That’s really a log-term prospect. But I believe higher profitability is our objective. The better the products, the higher the price, and the higher price will enhance higher profits.
W: The market is already very competitive. And if we raise our prices, whatever the quality, sales will drop rapidly.
M: Then shall we look at it from the other viewpoint--manufacturing. Well, if we can reduce cost in manufacturing that must put us in a strong position to adapt to the market. The only way for us is to sub-contract more of the production.
W: That will mean job losses if we do that.
M: That’s true. But the jobs that remain will be more secure.
W: It sounds reasonable. Maybe we can try this way.
M: That’s the best we can do, don’t you agree?