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CAS3701 Assignment 12 (COMPLETE ANSWERS) 2024 - DUE 4 October 2024

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  • October 1, 2024
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CAS3701

Assignment 12

(COMPLETE

ANSWERS) 2024 -

DUE 4 October 2024

,CAS3701 Assignment 12 (COMPLETE ANSWERS) 2024 - DUE 4 October

2024

QUESTION 1 1. INTRODUCTION Rhino Cellular Ltd (“RhinoCell”) is a South

African based manufacturer and retailer of low-cost smart phones. RhinoCell

was founded in 2011 in response to the uptake of smart phones in the South

African market. The company quickly saw a market opportunity for a low-cost

smart phone that provides a basic version of features when compared to other

high-end smart phones manufactured in South Africa and other African

markets. RhinoCell has a 31 August financial year-end. The board of

RhinoCell expects to authorise the annual financial statements of RhinoCell

for issue on 14 December 2023. The key to RhinoCell’s competitive

advantage is its locally based supply chain. RhinoCell manufactures its

products at the Maluti-A-Phofung Special Economic Zone (“SEZ”) in

Harrismith, Free State Province. The Maluti-A-Phofung SEZ is a key logistic

link by road and rail to South Africa’s economic and industrial heartland, with

key links to Gauteng, the Port of Durban, and the Bloemfontein-Cape Town

route. RhinoCell sources its main materials from South Africa and other

African countries and employs workers from the Harrismith community. This

strategy allows RhinoCell to procure materials at competitive prices and pay

lower wages to its employees, as the cost of living in Harrismith is lower when

compared to urban centres such as Johannesburg, Durban, and Cape Town.


For assistance whatsapp +254702715801

, 2. MARKETING AND SALES STRATEGY The smart phone industry is

dominated by a few international companies that manufacture their products

mainly in South-East Asia and the Americas. The strong expansion program

by these companies, coupled with the rollout of 5G internet, has allowed

global consumers to make increased use of the internet in their daily lives.

RhinoCell has identified Sub-Saharan Africa as an underdeveloped market for

smart phones and believes that low priced smart phones are the industry

future, considering the affordability constraints that plague consumers in the

region. According to the Global Systems for Mobile Communications

Association (GSMA), 49% of consumers in the Sub-Saharan African region

have access to 4G mobile technology, whilst only 17% of consumers have

access to 3G mobile technology. The lack of penetration in the Sub- Saharan

African region provides RhinoCell with a strong opportunity to capture a

sizeable portion of the market. RhinoCell’s Africa expansion strategy includes

a newly developed smart phone, named “EnduroPro94”, which has a 48-hour

long battery life and will be capable of utilising 5G mobile technology. The

longer battery life is in response to the electricity challenges that affect most of

Sub-Saharan Africa. EnduroPro94 will be targeted at the lower end of the

market. RhinoCell initially plans to sell the smart phone for R1 300 (excluding

VAT) in Sub-Saharan Africa. 3. MANUFACTURING AND SUPPLY CHAIN The

product's battery is the key to manufacturing a smart phone with a battery life


For assistance whatsapp +254702715801

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