Market for Eco-fone: Analysis of UK Smartphone Market and Feasibility of Business Expansion to Kingston

Running head: MARKET FOR ECO-FONE
MARKET FOR ECO-FONE
Name of the Student
Name of the University
Author Note

MARKET FOR ECO-FONE1
Table of Contents
Introduction................................................................................................................................2
1.1 An Overview of the mobile phone market in the UK..........................................................2
1.2 Forcasting the UK Adult Smartphone use..........................................................................3
1.3 Smartphones- A potential market for older customers........................................................4
1.4 Feasibility of Expanding business to Kingston using Pros and Cons table.........................5
1.5 Cost of a New Building........................................................................................................6
1.6 Testing the Possible Difference in Net Takings in the Two Shops......................................9
1.7 Customer Satisfaction..........................................................................................................9
1.8 Quality Procedure...............................................................................................................10
Conclusion................................................................................................................................11
References................................................................................................................................12
Appendix..................................................................................................................................13

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Introduction
The main objective of this study is to analyse the market for Eco-fone. Here it has
been discussed whether they must enlarge their business to Kingston or not. Smart phones
belong to the class of mobile phones which are differentiaed from featured phones by their
tougher hardware competences and widespread mobile operating systems which enable
widespread software, multimedia functionality and internet apart from fundamental phone
functions such as voice calls and text messaging. One of the largest retailing business all over
the earth is the smartphone selling business. The device has been getting constant
advancements that have made it more beneficial from a period ago when there is the first
smart mobile phone was fetched to the market. It has been noted that smartphones have been
more efficacious if it has been compared with the other electronic gadget that are wholesaled
in the market. A slight over 1.5 billion sales have been observed and at the same time the
“demand” for smartphones has been increasing steadily.
Analysis of Issues for Eco-fone Smartphones
1.1 An Overview of the mobile phone market in the UK
The smartphone has captured attention of all the people in the entire society which
includes the children also. Mobile phones are useful for young children usually smart phones
are useful for they can play games even they can study. It is the most commonly used device
all over the world. From this it can be said that one of the most money-making business all
over the world is mobile phone or smartphone business with an outstanding market
opportunity. Just similar to any other nation, United Kingdom also has the extensive market
for smart phones. According to Deloitte report, the rate of using smartphones is 85 percent
currently. It has been observed that the smartphone industry has a slight over fifteen percent
of the total population. Again, as smartphones take upgrades which indicates the smartphones

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owners will be upgrading so that versions of prevailing phones improve. According to
Deloitte report, adults in the United kingdom are showing interests in smartphones slowly
and steadily which indicates that the market for mobile phone is expected to grow with time
as additional adults will be wanting to possess smartphones. The “demand” for mobile
phones in the United Kingdom is expected to rise gradually. Changes in the smartphones
have taken place. As a result of this change, the “demand” for smartphones in the United
Kindom will increase. When there will be appropriate improvements on smart phones, the
maximum people will purchase the phones as they will discover it useful for everday use
purpose.
1.2 Forcasting the UK Adult Smartphone use
It is observed that the “adult population” who are expending smartphones have been
the lowermost in the United Kingdom over the past years. Though this is the situation in
United Kingdom, more adults are eager to purchase and own smartphones as they have
understood the usefulness of this device. Deloitte survey shows thirty-four per cent of United
Kingdom adults check their phones within five minutes when they wake up and around 55
per cent check their smartphone within a quarter of a hour. In the end, 78 per cent of adults
look at their smartphones within an hour before they are going to sleep.
2012 2013 2014 2015 2016 2017 2018 2019
0
20
40
60
80
100
120
f(x) = 51.53 exp( 0.09 x )
UK adult smartphone use
Figure 1

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Source- Created by the author
According to Deloitte report, the data for United kingdom usage of adult mobile
phone in the period 2012 to 2017 reveals that it does not show a linear trend. The curve in the
above diagram does not depict linearity. The trend is quadrilateral. This is why a “linear
forcast” would not work in this case. “Exponential forecast model” would work well here.
Report says that the adoption rate of smartphones by the adults is possible to increase by 3
per cent. This indicates that additional adults in the nation will use smartphones in the
following year. Forcasting also reveals that, in the year 2018 and 2019 , the use of adult smart
phones will increase. So it can be predicted that a smartphone will be owned by each single
adult in the next five years. Eco-fone has a great marketplace prospect mostly because of the
phones they sell there. The gadgets have useful features for the adults. Since adults have been
targeted, Eco-fone is expected in making good profit . Deloitte report depicts that the
adoption rate of mobilephones using by the adults is likely to increase over three per cent.
1.3 Smartphones- A potential market for older customers
The efficiency of the existing smart phones have been appreciated by the owners of
the smart phones. According to the survey conducted by Deloitte, 8 per cent of smart phones
users are eager to buy fresh versions of the phones they already use. In the United Kingdom
smartphone sales are growing with old consumers. It indicates that 71 per cent of 55 to 75
years olds possess a smart phone. It has been observed that this group of age has realized a
quicker rate of adoption than any other age over the past 5 years. Why the old people will
aways be consumers to the smart phone industry are as follows-
Firstly, It is much easier to book a taxi in cities by using an app and secondly, it has
been proven that smartphones are very useful in various activities they do. It is much
convenient for old people to use smart phone that have greater screens so if the old people’s

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eyesight worsens they are at ease to look at and also smartphones have louder speakers so
that they can listen loudly. And thirdly, it has been suggested by the research that old
individual loves the idea of being able to pick up mobile and look at it rather than pressing
buttons.
1.4 Feasibility of Expanding business to Kingston using Pros and Cons
table
When a company thinks of expanding its business it necessitates a lot of resources,
planning and time. Currently authority carries out entirely of Eco-fone’s operations at the 2
shops in the Borough of Richmond. The business has not ever functioned across the border in
Kingston but it has been suggested by subjective evidence that business is thriving.
Should we expand our business to Kingston?
Pros Score/10 Cons Score/10
High sales volume 8 High capital requirements 6
High returns 7 High operating costs 3
Economies of scale 8 The high cost of land 5
Growth 9 Increase advertisement
costs
4
Competitive advantages 7 Lack of brand awareness 3
Large market 8 competition 6
Increased net profit 9 Taxation 6
Total Pros 56 Total Cons 33
Average Pros 8.0 Average Cons 4.71
Figure 2
Source- Created by author
From the above table, it has been clearly shown that Eco-fone’s business to Kingston
should be expanded by eco-fone as the average pros are much greater than average cons. All
pros including High sales volume, High returns, economies of scale, growth, competitive
advantages and others have high score as it can been seen from the table.