(solved) Report for Eco-Fone

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REPORT FOR ECO-FONE
Date: March 18, 2019

Table of Contents
INTRODUCTION........................................................................................................ 3
1.1 An Overview of the Mobile phone market in the UK.......................................4
1.2 Forecasting the UK Adult Smartphone use ....................................................5
1.3 Smartphones - A potential market for older customers.................................6
1.4 Feasibility of Expanding business to Kingston using Pros and Cons table......7
1.5 Costs of a New Building.................................................................................8
1.6 Testing the Possible Difference in Net Takings in the Two Shops................11
1.7 Customer Satisfaction.................................................................................. 12
1.8 Quality Procedures....................................................................................... 14
1.9 Conclusions & Important Findings................................................................15
REFERENCES.......................................................................................................... 16
APPENDICES........................................................................................................... 17

INTRODUCTION
In the current market, technology will change very rapidly and it will affect the
smartphone market and create pressure to adopt these changes (Anderson, 2012). This report is
about the Eco–Fone company which have smartphones business. This company deals in
smartphones and accessories items and having two shops first one in the Putney and another
one in Richmond. Purpose of this report is to identify UK's mobile phone market and the
expansion across the border. This report include the analysis of different challenges,
opportunities, quality issues occur in front of Eco-Fone company. It also include the deep
discussion about customer satisfaction, product quality, source or finance and market demand
for the smartphone.

1.1 An Overview of the Mobile phone market in the UK
Consumer survey based on Deloitte report in the year 2017. with the help of this report
Eco-Fone company identity the usage of mobile phones in the UK market. This survey clearly
show the usage of smartphones which is increased very fast. Annual sale of mobile phones is
increase by 1.5 million in the year 2016 to 2017. Highest users of smartphones is adult
population and it is approx 58% and in the future it will be increase up to 90% in the year
2020. mobile phone applications help the consumers in their personal or professional life to
complete their day to day activities with the full of efficiency (Asgharzadeh, Bakouch and
Esmaeili, 2013). Most of the consumers use the mobile phones to make easy their daily life
easy. Companies also develop various innovative features which help the consumers to support
their working life and it also helps in scheduling their work. Approx 32 million users use the
mobile phone to complete their office work so it is known that the future demand of
smartphone will be increased. Mobile phone include the various features which make the work
easy for the consumers. Such as provide call facilities, email, calender, documents can save in
their mobile phone, excess internet, editing options, insert etc. it also include the entertainment
applications such as Video games, can download various application such as movie player,
camera, notes etc. Currently, this is the growing industry in the market because consumers will
buy because of the entertainment applications.

1.2 Forecasting the UK Adult Smartphone use
On the basis of Deloitte report 2017, adult smartphones use declared that approx 17%
of the population use mobile phones 100 times in as day and it include the age group of 16 to
75 years. Almost 34% people declared as addicted of smartphones between the age of 16 to 75
and 12% adult use the mobile phone 200 times in a day. Addicted people use the smartphone
everywhere at the time of studies, eating food or even with families meeting. According to this
survey 49% of demographic area cover by the adult between the age group of 16 to 24.
From the above chart it is clear that number of adult smartphone use will increase in the
year 2018 and 2019. linear chart will not able to represent the accurate information and the
comparison. Because changes in the use of mobile phone not clearly seen in the chart after
certain points. For example bar or pie chart will be the best forecasting model to analyse the
data.
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Usage of Mobile
Illustration 1: Use of smartphones (2012 - 2017)

1.3 Smartphones - A potential market for older customers
Usage of smartphones will increase according to age of consumers and the older generation
will adopt very fast. According to this survey, it indicated that more then 71% people have
their own handset and they are belong to the age group of 55 to 75 years. 20% old consumers
said, they will check their mobile phones 15 times in comparison to national average people
that is 56%.
According to Deloitte, age group of 55 to 75 years people who have higher wealth can
purchase premium smartphones for the use. Most of the phone applications help the consumers
to pay their bill online or by use of mobile phones. These apps offer the various facilities which
make customers life easy in the daily routine (Battaglini and et.al., 2012). Older generation
take advantage of smartphone because of their unique features. There are some the features
which make smartphones more popular among the old consumers such as:
1. Smartphones have bigger screen that is good for the older generation people because
they have low eye sites and it was beneficial for the old population.
2. Mobile applications are very easy to use and there is no complexity in the software and
provide higher version of app for the efficiency (Curado, Gazeau and Rodrigues, 2012).
3. It also provide the face recognize screen lock facilities which provide security from
other and make their data safe in their mobile phones.
4. According to this research, old people like these types of features which safe their time
and perform very fast. Such as screen lock options, font size and style change also like
by the old people.

1.4 Feasibility of Expanding business to Kingston using Pros and Cons table
Expansion of their products across the boarder is very crucial decision because it
required intense research or huge capital investment. Eco-Fone company current operate two
shops in the Borough of Richmond. Before that company not expand their business anywhere
but now they wanted to expand in Kingston. On the basis of collected anecdotal evidence it has
been concluded that, Eco-Fone company is growing company and it will observed according to
it's product life cycle stages. So cross border expansion is the suitable opportunity for the
company which help the organisation to increase their operational activities, productivities as
well as profitability (Faisal Ahammad and Glaister, 2018).
Eco-Fone company chose the potential area to expand their business in Kingston which
is in Canada. With the help of some pros & cons company can identify the success of
company's new expansion and for this company follow the pros & cons method to analyse
which is discussed below:
Should we expand our business to Kingston?
Pros Score/10 Cons Score/
10Potential Revenue 9 Cultural Barriers 5
Increase Brand Awareness 8 Currency Risk 6
Develop Customers Base 8 Shortage of Cash 7
Attractive Foreign Investors 5 Loss of Control 5
Learn New Culture 9
Required Skilled Work force 7
Dicersify Market 6
Total Pros 52 Total Cons 23
Average Pros 7.43 Average Cons 5.75
As per the above table, there are enough opportunity for the Kingston in term of
revenue increase, brand value, customer base, learn new culture etc. It is highly innovative
technology market so Eco-Fone can sustain in this market (Goldie, 2017). To expand across the
boarder will provide various opportunities but they also have to face some challenges such as
currency risk, cultural barriers, shortage of cash etc. On the basis of pros & cons average pros
is higher then average average cons. Eco-Fone should expand their operational business in the
Kingston for the huge market share as well as revenue.

1.5 Costs of a New Building
(a) Calculate Equal Monthly Cost.
Company decided to expand their business and it required highly suitable premises.
Since Eco-Fone paying EMI it will reduce the burden and provide flexibility or affordability.
So they can sustain in the market for lung time until they settled financially (Hazra, 2014).
Overall calculations are represented below in the table and further detail calculation available
in the appendix of this report:
Loan Value £350000
Total no of EMI 180
Annual Interest Rate 0.07
Monthly Interest Rate 0.00583
Monthly EMI Payment £3145.90
Total Loan Amount Payable £566261.81
Total Interest Payable £216261.81
Eco-Fone decide to purchase land rather than taking lease so cost of property is
£4,00,000. Company decided to take mortgagee loan and the principle amount is £3,50,000 for
the next 15 years at the rate of 7% per annum. So company decided to pay on Monthly Equal
Installation for the next 180 months.
(b) Well known commercial Mortgage lenders.
 Principality