The business features a high proportion of fixed costs in relation to building a network and acquiring spectrum. Variable costs are very low also relatively low and, in the case of SMS text messages. Pricing and gross profits in text messaging have pulled regulatory examination in the Unites States, Canada and elsewhere.
The case requires the utilization of essential notions in price behaviour, cost volume profit analysis and merchandise costing to understand the essence of the business as well as the profit margins involve. High tech businesses or many service demonstrate similar cost behaviors and hence the case permits students insight into the managing of such enterprises.
PUBLICATION DATE: March 25, 2011 PRODUCT #: W11049-HCB-ENG
This is just an excerpt. This case is about SALES & MARKETING
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