ECO FONE Report: UK Smartphone Usage, Market Analysis, and Expansion

This report, focusing on ECO FONE, a mobile company, analyzes the UK smartphone market, forecasting usage trends and evaluating business expansion strategies. It examines the increasing smartphone adoption, particularly among older customers, and provides market overviews and forecasting models. The report explores the financial feasibility of expanding ECO FONE's business, including the costs of a new building and potential differences in net takings between shops. It also includes descriptive statistics and quality procedures. The report highlights the growing importance of smartphones in both professional and personal contexts, drawing from various reports and studies, providing a comprehensive view of the market and business prospects.

ECO FONE Report

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1.1 Mobile phone market overview........................................................................................3
1.2 Forecasting the usage of smartphones by the UK adults..................................................4
1.3 Potential market of smartphone for the older customer ..................................................6
1.4 Expanding the usage of smartphones...............................................................................6
1.5 cost of new building.........................................................................................................7
1.6 Possible difference in net taking of two shops.................................................................8
1.7 Descriptive statistics.........................................................................................................9
1.8 Quality procedures .........................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
APPENDIX....................................................................................................................................13
Q.1 (b)...................................................................................................................................13
Q.2........................................................................................................................................13
Q.5........................................................................................................................................14

INTRODUCTION
ECO FONE company is a mobile company which provides the mobile and related accessories to
its customer. It start business in 2014 and from the establishment of company it was able to
achieve the target and also increases the profit over a period. The report highlights the usage of
smartphone in UK territory. It also explains that the usage of smartphones is increasing in older
age more fastly in compare to the young generation or adult. The smartphones provide the
various facilities to the users and help them to adopt the changes according to the environment.
The report highlights the trend of changes external environment which affect the business of the
company.
MAIN BODY
1.1 Mobile phone market overview
The market of mobile phone is increasing day by day because of the increasing usage of the
smartphones both for the professional and personal purpose. From 2017 the usage of emails,
voice calls and calendar management is increases. According to the Deloitte report it can be
found that 32 million employees are using smartphones in workplace for different activities like
communicating the information, submit time sheet etc. According to the report 44 % employees
use emails, 34% employees use voice calling and 23% employees use calendar management to
manage work and improve their work by setting reminder for the important meetings,
conferences etc. The unofficial smartphones application usage also increases in workplace
(Mobasheri, and et.al., 2015). They use the application for the mobile browsers, photo
application and instant messaging which help them to communicate the information fastly. From
the deloitte report 3% of employees use Whatsapp application at least one time in whole day.
The usage of smartphone is expanded to the other areas also such as to pay the expenses, intranet
and time sheet submit. The increasing usage of smartphones reduces the impact of PC and tablets
(Robertson and Burton, 2016). Now the users are more depended on the smartphones rather than
to use PC and laptops because of easy usage of smartphones. In UK the mobile market is
expanding because of the additional feature such as quick response, easy uses, record transaction
etc.
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It can be concluded from the graph that in 2017 and 2016, 37% and 42% employees use the
smartphones respectively for office use which present that the usage of smartphones for email
purpose is decreasing in 2017 in compare to 2016 because of the increasing the usage of other
applications.
1.2 Forecasting the usage of smartphones by the UK adults
Basis Smartphones
2012 52.00%
2013 62.00%
2014 70.00%
2015 76.00%
2016 81.00%
2017 85.00%
2018 93.8%
2019 100.3%
Basis Smartphones
0.0651 x+.482
2018 0.0651 (7) +.482 = 93.8%
2019 0.0651 (8) +.482 = 100%
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Linear forecasting is used by the companies to evaluate and estimate the future outcomes of
company (Fang and Lahdelma, 2016). It helps the company to predict the future sales, customer
trend, behaviour etc. on the basis of past data and make the current assumptions to take the
effective decisions. From the above table it can be found that the usage of smartphones in UK is
increasing day by day. On the basis of the 2012 to 2017 data of usage of smartphones in UK,
2018 and 2019 data are been forecasted. Forecasting method help them to evaluate the
performance of smartphone in UK and take the effective measures to improve the sales of the
phones in the market.
There are several methods which help the company to forecast the sales and market trend in UK.
They can use the another model for forecasting the sales such as moving average method (Elliott,
Müller and Watson, 2015). It helps them to forecast the usage of smartphones in 2018 and 2019.
It can be forecasted that in 2018 the usage of smartphones is 93.8% which increase to 100.3% in
2019.
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1.3 Potential market of smartphone for the older customer
The usage of smartphone in older customer also increases because of the additional features and
understanding the usage of application in their day to day activities. According to the BBC report
it can be find that 71% of old between 55 to 75 years of population are capable of using the
handset (Smartphone sales boom with over-55s, 2017). The adaptation of smartphone is faster in
compare to the adult. The smartphones are popular in older customer because of the attraction
toward the smartphone by the first hand users and the attractive features. Smartphone provide
easy payment facility and convenience to the uses so the older users does not have to go
anywhere for the payments. They can book their taxi and flight by using various application on
their handset and also get the latest information on their screen. It improves their knowledge and
awareness in different areas (Yun and Kim, 2018). The latest model provide big screen to view
the details and information which also attract older customer. The additional features such as
smart lock, facial lock also attract them which ultimately increases the popularity and sales of
smartphones in UK. The facial lock comes with the new ideas which help the old user to just
look at the phones and start their functioning rather than to put glasses for typing the passwords.
The changes in smartphones helps the older user in their daily scheduled by providing the
information, news etc.
1.4 Expanding the usage of smartphones
Pros Score Cons Score
Increasing profit of the
business from its
establishment
8 Lack of skilled and
knowledgable
workforce
6
Increasing competitive
advantages and usage
of smartphones
5 Government policies,
rules and regulations
7
Greater market share
by expanding business
5 Increasing competition
in market
5
Financial feasibility 6 External forces 5
Increasing 7
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opportunities for the
workforces
Total 31 23
The sum of the pros of expanding business of ECO FONES is 31 and the cons of the business is
23 which clearly present that the company is able to expand their business in Kingston. It helps
them to increase the company wealth, profits and productivity. They can expand their business
and get the competitive advantages in the market and gain more market share by increasing the
sales of the business. It may increases the employment opportunity in the market and provide
jobs to the workforce and help in economy of scales. Expanding the business of ECO FONES is
more beneficial to the company and help them to overcome the cons of the business.
1.5 cost of new building
(a)
Given that:
Mortgage repayment period: 15 years
Loan payment: Sum of loan amount / Discounting factor
= €350000 / ([(1 + .07)^ 15] – 1} / [.07 (1 +.07)^ 15])
= €350000 /13.75
= €25455
Repayment amount (monthly): €25455 / 12
= €2121
It can be analysed that for the ECO FONE company purchasing the shop is more beneficial
rather than to lease the shop. The monthly repayment amount of business is €2121. ECO FONE
company is able to expand their business in other places such as Kingston and take risk in the
business and purchase the shop for establishing business with the profit. The mortgage amour of
shop is €400000 but due to the negotiation with the lender the cost of mortgaging the shop for
expanding business is closer to €350000 for the period of 15 years.
b) Lender companies which provide mortgage loan to the businesses in UK
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1.6 Possible difference in net taking of two shops
Given
Particulars Figure
Sample 40
1 shop Average 100s
1 shop Standard deviation 20
2 shop
Mean 90
Standard deviation 40
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Null Hypothesis : from the given data it can be concluded that there is no significant differences
in the net taking of 2 shops.
Alternative hypothesis : there are significant differences in the net taking of the 2 shops which
can be summarized as follows :
Assessment of Z score value
Table 1
One shop mean value 100
2 shop mean value 90
Standard deviation (one shop) 20
Assessment of z score (100 – 90) / 20
0.5
Table 2
Value of mean of one shop 100
Value of mean of 2 shop 90
Standard deviation (two shop) 40
Assessment of z score (100 – 90) / 40
0.25
From the above calculation it can be calculated that their both the shops are move in same
direction with their mean. The assessment of z score in both cases is above to .05 which indicate
that null hypothesis is used (Ault, and et.al., 2018.). It presents that there is no variation in the
variables of the both shops data. From the above table it can be concluded the value of z score
are above to the P significant value .05. For the 1 and 2 shop the P significance value are .5
And .25 respectively which indicate that null hypothesis is accepted and the other one alternative
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hypothesis is rejected. In other words the mean value of significance net taking of the companies
move in same direction
1.7 Descriptive statistics
Particulars Q1 Q2 Q3a Q3b Q3c Q3d Q4 Q5 Q6
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
From the above table it can be concluded that the average and median is 3 which indicate that
average number of the customer purchase the product or services from the ECO FONE company
in between 3 to 6 months. From the 2 question it can be indicate that the average mean and
median of the data is 3 which indicate that the average number of customer use the product or
services of the company between 1 to 3 year than they change the product. From the question 3a
it can be concluded that the mean, median and mode of the data is 2 which indicate that the
satisfaction of the customer from the product is fair, from question 3b it can be concluded that
quality of product or services are also fair. Question 3c indicate that sales staff of the company is
excellent from the median and mode data and from question 4d it can be find that proce of the
product are also good on the basis of mean and mode (Winch, Ktsanes and Ktsanes, 2017). The
mode and median of question 4 is 2 which indicate that the customer are dissatisfied with the
product and services and from question 5 it can be concluded that the choice of doing business
with the company is neutral or unlikely because the mean and mode of the company data are 3
and 2 respectively. Question 6 indicate the mode and mean value of data is 4 which refers that
customer likely recommend the product or services to the other customer.
1.8 Quality procedures
Variable of random poison 2
Success of mean rate 15
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Probability Poisson P(X=2) 0.000
Probability Cumulative P(X<2) 0.000
Probability Cumulative P(X>2) 1
Probability Cumulative P(X>=2) 1
From the above table it can be concluded that there are various activity which help the
organization to improve the quality of the product and services of the company. The improving
quality of product and services help them to increase the revenue and sales of the company and
help them to increase their profit by effective strategies. The effective profitability of the
company help them to achieve the target and reduces the wastage of money and resources. The
data present that company is able to achieve the goal of the organization and effectively manage
the operational activity.
CONCLUSION
The report summarizes the trend of usage of smartphones in UK and the various factor
which affect the sales. From the Deloitte report it can be concluded that the usage of smartphone
is increases in UK and also in the business activity. According to the BBC report smartphone are
more popular in older people because of the additional features and usage in daily activities.
Now the older age are more attracted towards the handset. It can be concluded from the report
that ECO FONE is able to expand the business in other places and able to buy the shop for
expanding business in Kingstone.
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REFERENCES
Books and Journals
Ault, T.R., and et.al., 2018. A robust null hypothesis for the potential causes of megadrought in
western North America. Journal of Climate, 31(1), pp.3-24.
Elliott, G., Müller, U.K. and Watson, M.W., 2015. Nearly optimal tests when a nuisance
parameter is present under the null hypothesis. Econometrica, 83(2). pp.771-811.
Fang, T. and Lahdelma, R., 2016. Evaluation of a multiple linear regression model and SARIMA
model in forecasting heat demand for district heating system. Applied energy, 179.
pp.544-552.
Mobasheri, M.H., and et.al., 2015. The ownership and clinical use of smartphones by doctors and
nurses in the UK: a multicentre survey study. BMJ Innovations, 1(4). pp.174-181.
Robertson, D.J. and Burton, A.M., 2016. Unfamiliar face recognition: Security, surveillance and
smartphones. The Journal of the Homeland Defense and Security Information Analysis
Center. pp.14-21.
Winch, R.F., Ktsanes, T. and Ktsanes, V., 2017. The theory of complementary needs in mate-
selection: An analytic and descriptive study. In Man, Woman, and Marriage (pp. 45-
61). Routledge.
Yun, Y.U. and Kim, Y., 2018, June. An Indoor Positioning Scheme Exploiting Geomagnetic
Sensor of Smartphones. In International Conference on Mobile and Wireless
Technology(pp. 121-128). Springer, Singapore.
Wang, Z.X. and Ye, D.J., 2017. Forecasting Chinese carbon emissions from fossil
energy consumption using non-linear grey multivariable models. Journal of Cleaner
Production, 142. pp.600-612.
Online
Smartphone sales boom with over-55s. 2017. [Online]. Available through :
<https://www.bbc.com/news/technology-41319684>
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