Movil Inc. is a world renowned mobile phone manufacturer specializing in high tech smart phones. Headquartered in Spain, Movil Inc. has achieved success as one of the most valuable companies in the world since its establishment in 2008. Today, Movil has succeeded to become a dominant competitor in the industry under the leadership of Chandler Perry.

A global success, Movil Inc. focuses on producing exclusive, high-tech smart phones that are priced relatively high for greater returns. Competitors like Oppo, Samsung and LG aggressively compete with Movil. Such aggressiveness, observable in rapid innovation, aggressive advertising, and imitation, impose a strong force in the industry environment. Moreover, in terms of product differentiation, available products in the market are generally similar in fulfilling specific purposes.

The establishment of Movil Inc. and other firms in the mobile phone industry requires a high capital. It is extremely costly to develop and manage the company and keep it competitive in the market against giants like Samsung and LV. However, there are large firms with the financial capacity to enter the market. Furthermore, to remain relevant and to position themselves in the market, firms in this industry need to continuously upgrade and enhance their systems and processes whilst using technology protection in their business.

In terms of customers, each customer’s purchase in Movil is small compared to the company’s total revenue. On average, a single customer will purchase one to two units of phones maximum on the different platforms made available for them. Apart from that, due to the significantly high pricing of devices offered by Movil, the reach and the number of targeted customers can be low and limited.

The global size of its supply chain allows Movil to access many suppliers around the world. There is a high overall supply of materials and inputs such as semiconductors, metals and glass from various suppliers in the world which gives Movil an upper-hand in business-supplier bargain. Considering the vast variety of suppliers in the market, the suppliers however, provide a limited range of materials and services, reducing the size of supplies given per supplier.

Question

a) Identify ONE (1) main objective of Movil Inc.

b) In terms of accounting information, identify FOUR (4) reasons Movil Inc. will share their financial details with external parties.

c) Based on Movil Inc., identify SIX (6) examples of the business system factors.