Smartphone Market Analysis and Business Expansion Plan

The assignment evaluates the smartphone market growth, assesses the viability of EcoFone's business expansion plan in Kingston, and identifies areas for improvement. It also examines the impact of Poisson distribution on error assessment and recommends innovative features to attain a competitive advantage.

Case study

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Presenting brief overview of mobile phone market in UK.....................................................1
TASK 2............................................................................................................................................2
Preparing forecast related to mobile phone usage using line chart........................................2
TASK 3............................................................................................................................................3
Adding features in smart phones would raise the sales revenue............................................3
TASK 4............................................................................................................................................3
Table of Pros and Cons...........................................................................................................3
TASK 5............................................................................................................................................5
b) Commercial mortgage lenders in UK................................................................................5
TASK 6............................................................................................................................................6
Presenting the findings...........................................................................................................6
TASK 7............................................................................................................................................7
TASK 8............................................................................................................................................8
Conclusion..............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
In the recent times, UK smartphone sector is growing with the very high pace. Statistics
shows that, in UK, adults spend more than two hours on smartphones. This in turn shows that in
UK usage of smartphone among adults is too higher. The present report is based on the case
scenario of Eco-Fone, which is involved in selling smartphones and related accessories. Now,
business unit wishes to explore operations in new market with the motive to generate high sales
and profit margin. In this, report will provide deeper insight about the trend of smartphone usage
using reports published by Deloitte. Further, it will also shed light on whether usage of
smartphones will be increased in the near future or not. It will also highlight the extent to which
plan pertaining to expansion is viable from financial perspective. It also depicts how statistical
tools can be used for summarizing data set and making decisions.
TASK 1
Presenting brief overview of mobile phone market in UK
The existence of mobile phones in world economy since 90’s. However, the rapid increment
and growth in the smart phone industries which have generated a great reputation in the market.
In the recent time period on which it can be said that there have been increment in the number of
mobile phone users (Priporas, Stylos and Fotiadis, 2017). As per the current state for the
smartphone users in 2018 on which it can be said that, it has become the daily routine and part of
daily tasks which is being required in every task and operational activities. It has been claimed
that there will be 87% increment in the smartphone uses in the upcoming years (Vorley and
Williams, 2016). Therefore, from the last year the raise in such uses have bene increased around
2% more.
The use of this device on which using multiple devices have been reduced on which major
replacement can be seen in the current time regarding the use of Television, Cameras, Calendar,
watch, compass, maps etc. However, the multiple operational features in a single device have
developed convenience among society which is being helpful and time saving for having better
life style (Mobile Consumer Survey 2018: The UK cut, 2018). It can be said that, there will be
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increment in the various features of smartphone uses in economy on which various manufactures
are trying to add more features and applicational influences which would be adequate in
increasing the satisfaction level of users (Berenguer and et.al., 2017).
TASK 2
Preparing forecast related to mobile phone usage using line chart
Dataset and line graph pertaining to the usage of mobile phone is enumerated below:
Year Tablet Laptop Smartphone
2012 16% 73% 52%
2013 36% 76% 62%
2014 50% 75% 70%
2015 60% 79% 76%
2016 63% 76% 81%
2017 68% 78% 85%
Line Graph
Interpretation: Line graph mentioned above clearly shows that usage level of all the
electronic gazettes namely tablet, laptop and smartphone will be inclined in the near future.
However, in comparison to others, usage level pertaining to smartphone increased from 52% to
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85% respectively. On the contrary to this, in 2017, usage level of tablet and laptop accounts for
68% & 78% significantly. Referring this comparative analysis, it can be presented that usage
level of smartphone will be high in the near future. Thus, Eco-Fone will get desired level of
outcome or success by making focus on manufacturing as well as selling aspect of smartphone.
TASK 3
Adding features in smart phones would raise the sales revenue
As per the recent survey which have been made in relation with improving the selling of
smartphones in the market on which manufacturers are researching regarding the features which
will be helpful to the consumers in relation with attaining the appropriate satisfaction from using
the smart phones (Hampshire, 2017). In relation with the recent surveys made by BBC on which
it has been analyzed that there are comparatively large number of older consumers which are
having interest in operating the devices (Bhih, Johnson and Randles, 2016).
It has been indicated here that 71% of users are belongs to the age group of 55 to 75 years
and this research have also defined that this age group has seen faster adoption rate than any
other in last five years (Priporas, Stylos and Fotiadis, 2017). Moreover, adding more features in
the smart phone is basically based on the concept to make it more reliable and user-friendly for
consumers (Smartphone sales boom with over-55s, 2017). Adding the artificial intelligence
would impact on better convenience as the device learns consumer interest, recognizes their
voice and bringing them effective outcomes would be satisfactory for buyers (Vorley and
Williams, 2016).
Moreover, in this case, the addition of more features and making reliable research and
development operations by manufacturers will be profitable to them as there will be raise in the
number of consumers for the smart phones and which will create boom in the sales revenue
(Berenguer and et.al., 2017). Therefore, on which implication of search engines and adding
internet, social media features etc. have created interest among the old age consumers
(Hampshire, 2017).
TASK 4
Table of Pros and Cons
In relation with analyzing the recent increment in the operational uses of the smart phone
devices in the economy on which it can be said that there has been raise in the competition for
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smartphone manufacturers (Bhih, Johnson and Randles, 2016). They have been approached
towards bringing more and more products which would be adequate in improving the interest of
consumers for making adequate operational undertakings (Priporas, Stylos and Fotiadis, 2017).
In this case expanding the business at various locations would be effective in terms of generating
the large number of consumers for the business (Vorley and Williams, 2016). It has been planned
by Eco-fone professionals regarding expansion of business in Kingstone where it can be said that
such approached would be effective in bringing better gains to the business in the reliable time
period (Berenguer and et.al., 2017). Similarly, to address the feasibility of this proposed plan on
which here are several pros and cons that have been marked in the below listed table such as:
S.
No.
Pros Score
(Out
of 10)
S.
No.
Cons Score
(Out of
10)
1 Growth in number of
consumers
8 1 There will be higher
operational costs in such
expansion
6
2 Raise in sales revenue 7 2 Taxation and law policies
would affect the business in not
making appropriate operational
control
5
3 Improvements in research and
development operations
5 3 Need to conduct more market
research which would affect
wastage of time and capital
4
4 Addition of new features 5 4
5 Increase in operational areas
for business.
6 5
6 6
7 7
8 8
9 9
10 Total 31 10 Total 15
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By considering the above presented table of pros and cons on which it can be said that there
have been higher benefits than the cons stated in the table (Hampshire, 2017). However, it can be
said that expansion of Eco-fone in Kingstone would be beneficial as there will be various
profitable opportunities stated in the environment (Bhih, Johnson and Randles, 2016).
TASK 5
Particulars Figures
Asked price £400000
Negotiable price £350000
Time 15 years
Repayment mortgage £350000
Rate of mortgage 7%
Particulars Figures
Debt payment [((1+0.07) ^ 15) -1] / [0.07 * (1+0.07) ^15]
Total amount of loan / Discounting factor
1.76 / 0.19
=9 .11
Total amount of loan
350000 / 9.11
= £38419.32
Repayment amount on monthly basis
38419.32 / 12
= £3201.61
b) Commercial mortgage lenders in UK
Figure 1 Logo of commercial lenders in UK
(Source: Commercial Mortgage Services in Sheffield, 2018)
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However, it has been presented that, there have been increment in the number of smartphone
manufactures in UK on which expansion of business would require the appropriate amount of
funds to be paid by the firm (Priporas, Stylos and Fotiadis, 2017). In this case it can be said that,
in the upcoming period there would be increment in the number of users at the business which
would impact on raising the operational goals and motives would be adequate in managing the
operational activities (Vorley and Williams, 2016).
TASK 6
Presenting the findings
H0: Null hypothesis: There is no statistical significant difference takes place in the figure of two
shops with regards to net taking.
H1: Alternative hypothesis: There is a statistical significant difference takes place in the figure
of two shops with regards to net taking.
Given:
Sample 40
Average 100
Standard deviation 20
Second shop
Mean 90
Standard deviation 40
Calculation of Z score
Table 1
Average (first shop) 100
Average (second shop) 90
SD (first shop) 20
Z score assessment
(100 – 90) / 20
= 0.5
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Table 2
Mean value (first shop) 100
Mean value (second shop) 90
SD (second shop) 40
Z score assessment
(100 – 90) / 40
=0.25
TASK 7
In order to summarize information gathered by Eco-Fone through survey descriptive
statistics tool has been applied. This in turn clearly presents average, median and mode
which in turn helps in assessing customers attitude and preferences in an effectual way.
Ques 1 Ques 2 Ques
3a
Ques
3b
Ques
3c
Ques
3d Ques 4 Ques 5 Ques
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Mean 2.95 2.89 1.98 2.50 3.25 2.51 2.51 2.52 3.71
Standard
Error 0.15 0.09 0.08 0.09 0.12 0.10 0.12 0.09 0.11
Median 3 3 2 2 4 3 2 2 4
Mode 4 3 2 2 4 3 2 2 4
Standard
Deviation 1.48 0.95 0.84 0.87 1.25 1.07 1.19 0.92 1.15
Sample
Variance 2.18 0.90 0.71 0.76 1.56 1.13 1.41 0.84 1.33
Kurtosis -1.46 -0.72 0.24 -0.65 -0.82 -1.21 -0.17 -0.13 0.24
Skewness -0.03 -0.27 0.75 0.26 -0.89 -0.16 0.84 0.47 -1.10
Range 4 4 3 3 4 3 4 4 4
Minimum 1 1 1 1 1 1 1 1 1
Maximu
m 5 5 4 4 5 4 5 5 5
Tabular presentation depicted above clearly shows that mean and median value,
pertaining to question 1, accounts for 3 significantly. It presents that last time purchase of
customers were between 3 and 6 months. Further, in the context of question 2, value of mean,
mode and median is same such as 3. On the basis of this, it can be stated that time duration of
customers pertaining to usage of smartphones offered by Eco-Fone was between 1 and 3 years.
Descriptive evaluation presents that level of customer service offered by Eco-Fone is recognized
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by average customers as good. In addition to this, customers perceived quality of product, sales
staff and price/ value as good. Hence, for gaining competitive edge over others business unit
needs to make focus on enhancing the level of customer service. In addition to this, results
present that
TASK 8
 Poisson random variable: 2
 Mean rate of success: 15
 Poisson probability P(X=2): 0.00
 Cumulative probability P(X<2): 0.00
 Cumulative probability P(X>2): 1
 Cumulative probability P(X>=2): 1
Conclusion
By summing up this report, it has been concluded that smartphone market is growing with
the very high pace. It can be seen in the report, usage level of smartphone will be inclined
significantly in the near future. Thus, focusing on the innovative features and quality aspect
EcoFone can maximize both productivity as well as profitability. It can be summarized from the
evaluation that expansion plan pertaining to business operations in Kingston is viable. Further, it
can be stated that poison distribution helps in assessing the level of errors more effectually. It has
been articulated from the evaluation that Eco-Fone needs to make focus on developing
competent strategies which in turn ensures improvement in service, quality etc. Moreover, as per
the current findings, customers will not prefer to recommend products manufactured by Eco-
Fone. Hence, company is advised to include innovative and distinct features in smartphone
which in turn contributes in the attainment of competitive advantage.
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REFERENCES
Books and Journals
Priporas, C. V., Stylos, N. and Fotiadis, A. K., 2017. Generation Z consumers' expectations of
interactions in smart retailing: A future agenda. Computers in Human Behavior, 77,
pp.374-381.
Vorley, T. and Williams, N., 2016. Not just dialling it in: Examining cognitive-based approaches
in enterprise education using a smartphone application. Education+ Training, 58(1),
pp.45-60.
Berenguer, A. and et.al., 2017. Are Smartphones Ubiquitous?: An in-depth survey of
smartphone adoption by seniors. IEEE Consumer Electronics Magazine, 6(1), pp.104-
110.
Hampshire, C., 2017. A mixed methods empirical exploration of UK consumer perceptions of
trust, risk and usefulness of mobile payments. International Journal of Bank
Marketing, 35(3), pp.354-369.
Bhih, A. A., Johnson, P. and Randles, M., 2016, June. Diversity in smartphone usage.
In Proceedings of the 17th International Conference on Computer Systems and
Technologies 2016 (pp. 81-88). ACM.
Online
Commercial Mortgage Services in Sheffield. 2018. [Online]. Available through :<
https://www.one77fs.co.uk/commercial-mortgage-services-sheffield/?
gclid=EAIaIQobChMIsrfGzeut4QIVVxiPCh0QOAFJEAAYAyAAEgKFePD_BwE >.
Mobile Consumer Survey 2018: The UK cut. 2018. [Online]. Available through :<
https://www2.deloitte.com/uk/en/pages/technology-media-and-telecommunications/
articles/mobile-consumer-survey.html >.
Smartphone sales boom with over-55s. 2017. [Online]. Available through :<
https://www.bbc.com/news/technology-41319684>.
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