,CAS3701 Assignment 12 (COMPLETE ANSWERS) 2024 -
DUE 4 October 2024 ; 100% TRUSTED Complete, trusted
solutions and explanations.
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. 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 of 48 hours. In its earlier products, RhinoCell used nickel-
metal hydride batteries sourced from China. These batteries
made the smart phones bulkier as they had low energy density
and only allowed eight hours of battery life. The battery for the
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