Question

BELL service provider now expands to a new business in Prince Edward Island. The company has two options: one is to install its new set of services in a rural area, and the other is to target an urban area. The company needs to decide based on potential customer demand, infrastructure, and profitability.

Which of the following factors would be most important for BELL to consider in making this decision?

a) Availability of cultural resources
b) Population density and demographics
c) Historical landmarks in the area
d) Local healthcare facilities and services

Answer 1

For BELL service provider, the most important factors when expanding to Prince Edward Island are population density and demographics, as they determine potential customer demand and profitability.

Step-by-step explanation:

When BELL service provider is considering expanding to a new business in Prince Edward Island, the most crucial factor to take into account would be population density and demographics. This is because customer demand is largely driven by the number of potential customers in an area, which correlates well with the area's population density. Demographics give insight into the types of services that might be in demand based on age, income levels, and lifestyle preferences. Additionally, infrastructure considerations such as the existing network capacity, the cost of building new infrastructures, and the accessibility of technology like cellular and satellite systems are pivotal in determining profitability. These elements directly impact the company's ability to provide quality services and achieve a profitable operation.