In: Accounting
I need 7-8 sentences responding to each paragraph written by my peers. Please make sure each paragraph is error/grammar free. Please separate each paragraph written by number 1 and 2. .please write with differing viewson their response. Thanks, Chegg
1- 97% of America or 97% of Americans. Obviously, one is based on land area and the other is based on the number of people. If a cell phone company can achieve 97% of Americans, then the company's income must be very substantial. If a cell phone company achieves 97% of the US land, it shows that the coverage is very wide, for example, some areas with sparsely populated areas are also covered. According to data, the United States has a population of 328.2 million and a land area of 3,797,000 mi². Wyoming has the smallest population in the United States, with only more than 500,000 residents. If I choose, I will choose company A. For me, cell phone company can cover 97% of the area of the United States. Relatively speaking, the manpower and material resources spent by the company will be reduced, because the area is determined and easy to operate, but 97% of Americans need to spend a lot of money. Advertising costs, etc., that is very inefficient and difficult to maintain. For example, a person who loves to travel will also choose a US cell phone company that can cover 97% America, because going to places with few people can ensure that they can call others. So I choose company A.
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2-Do you think it is better for a cell phone company to cover 97% of America or 97% of Americans? What is the difference? If cell phone company A covers 97% of America, while cell phone company B covers 97% of Americans, which company would you choose and why?
In my opinion, I think this question is to rely on a company’s two basics which are profit and service. If company B covers 97% of American users, this means that they will definitely make a large amount of money. There are about 330 million people in the USA (U.S. and World Population Clock, 2020). If 97% percent of these people using the same cell phone company that means this company will make trillions of incomes. what the greatest advantage is that this company's service can choose to focus on places with a high population density. This action will help them to cut a large amount of budget. Alaska, which is the largest US state and third least populated state. The land area of Alaska is one-fifth of the U.S. but the population is third-least in the US (Kästle, 2020). If company B services this place, it will be a very uneconomical action. the company can choose to abandon these very-low-density places and try their best to serve other states with more economic benefits. If company A covers 97% of America, this means that they will have the greatest service in the United States because this means that people in the US can use this service no matter where they go. Company A needs to focus on the coverage of US territory.
1. I partially agree with you, but i have some reservations. In your analysis of selection of company A, you consider things from only a general, societal point of view. I think that you have ignored the financial aspects of these considerations. The company A, which covers 97% of America, would be spending huge amounts in resources, labour and upkeep of various towers, lines, cables and facilities. The cost of maintining these would go through the roof and without the approriate revenue source, the company would shut shop within a very short period. The major factor is, a tower which can serve 500,000 people at once and another which will serve just 50,000 people, both cost the same amount of labour,resources and upkeep. However, the corresponding revenue from both towers is not the same. Hence, the second tower would be loss making. Consider this on a very large scale, the company which covers 97% of american land would ultimately be loss making, due to the highly unnecessary areas covered which have very sparce population or even no population.
2. I fully agree with your analysis. You have considered the profitability and the economies of scale in your analysis. Company B would truely have enormous revenue with 97% of Americans subscibing to it. Company B would also in effect be a giant and would be able to command a cheaper service. Company B can also make acquisitions and cover a greater part of value chain in order to reduce costs. Company A which is already serving a whooping 97% of the Americans would be in a better position to calculate the area wise profitablitiy and to mark the profitable areas and discontinue in the loss making ones. Company A on the other hand would enjoy the ultimate consumer faith and loyalty because of its higher coverage and consumers may shift to company A in the longer term.
*** The above are my personal views/comments as asked by you. You can comment in case of any doubt or query and i will get back to you.***
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