Question

In: Finance

How would you sell mobile or cellular phones (the hardware, not the contractual service) in Costa...

How would you sell mobile or cellular phones (the hardware, not the contractual service) in Costa Rica. Costa Rica has about 4.1 million people, a sprawling urban area around the capital San José, and several secondary but much smaller cities in the mostly rural provinces. The Costa Rican government owns and operates the landed telephone system, and as a result of constraints and inefficiencies, demand for landlines has always exceeded supply. Cell phones have “leap-frogged” landlines in countries like Costa Rica, and although consumers’ willingness to pay may be lower than in more developed countries, people have enthusiastically embraced cell phone usage as substitutes for land lines.

Using the Costa Rican example, list the kinds of information (variables) you need to know before you could make a sensible decision about selling cell phones designed in the U.S. in that country.

Solutions

Expert Solution

First of all costa rican persons require to get connected through each other with the help of phones,either landline or cell phone.however due to large demand of landline usage not all of them was able to get connected whenever they want to get connected.

Secondly, they have a largest green habitation and most of the part of costa ricon is covered with greenery,to sell mobile phone we should maintain their green to the extent it is possible. Costa Rican plans to become a carbon-neutral country by 2021 & by 2016, 98.1% of its electricity was generated from green sources particularly hydro, solar, geothermal and biomass.

Third,The country spends roughly 6.9% of its budget (2016) on education, compared to a global average of 4.4% which can be consider as a positive side of cell phones market as internet will help in connecting globally and help costa rican persons to get more effective education.

So we have to consider these factors and then only the decision of cell phone selling can be made in costa ricon.


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