The CEO of a company asked the Board of Directors at a meeting whether the company should enter into a business new venture. During the deliberations one member asked, are we prepared to taking this risk? This is because the dominant companies in the sector of this business new venture wielded a lot of market power. As a results other firms that have tried to take market shares from them have failed miserably.

Required

As a consultant to the board, State and explain any five reasons why the company should venture into the new business.

Case Two

The series of coups in the post-independence era have resulted in the suspension of Ghana’s constitution and major policy reforms. The trend changed with the restoration of constitutional rule in 1993. One industry that benefited from this is the telecommunication sector. This sector was finally liberalized in the 1990s through a five year accelerated development programme which allowed private sector participation in all sectors of the telecom industry (Dergol-Der et al. 2017).

According to the National Communication Authority, the first cellular phone service in Ghana was initiated by Mobitel. Available data on the National Communication Authority website revealed the following:

	Telecom
	Tigo	Expresso	MTN	Ghana Telecom /Vodafone	Airtel	Glo
Entry Year and number of subscribers	1992 900	1995 2500	1996 400	2000 1000	2008 267,808	2012 1,568,014
Current Year and number of subscribers	2016 53,339,052	2016 93599	2016 19,296,157	2016 8,289,913	2016 4,591,051	2016 695,306

Required:

1. Describe the market structure before the liberation indicating the pricing and output decisions.

2. Describe the current structure of the industry.

Answer rating: 100% (QA)

Liberalisation the economic liberalisation mainly aimed at inhancing the country economy by making more money through trade of goods and services By i... View the full answer