Eco-Fone UK Market Expansion: A Comprehensive Report (Fall 2023)

Desklib provides solved assignments and past papers to help students succeed.

ECO-Fone
1

Table of Contents
Introduction.................................................................................................................................................3
Task 1..........................................................................................................................................................4
Task 2..........................................................................................................................................................5
Task 3..........................................................................................................................................................7
Task 4..........................................................................................................................................................8
Task 5........................................................................................................................................................10
A............................................................................................................................................................10
B............................................................................................................................................................11
Task 6........................................................................................................................................................12
Task 7........................................................................................................................................................14
Task 8........................................................................................................................................................18
Task 9........................................................................................................................................................20
Task 10......................................................................................................................................................21
2

Introduction
Eco-fone is a UK based company engaged in the retail business of smartphones and its related
accessories from its two shops located in Putney and Richmond. At present does not engage in
making sales of laptops and tablets. Eco-fone is interested in expanding its business and is
identifying the potential market segment for its expansion in the United Kingdom. For such a
potential market segment study a market survey has been taken up by eco-fone and also the use
of various tools and techniques for identifying key findings thus helping in decision making for
expansion. The overall objective of the study is to identify the overall areas of expansion for
Eco-fone.
3

Task 1
A. It has been noted that nowadays Smartphone has become a very important need for the
individual for daily routine. It has affected the lives of individuals and organizations are
one way or another. The environment of the market in the United Kingdom has been
dynamic and smartphones are the newly introduced gadgets in the market which is
gaining popularity. The United Kingdom is a developed country and is having a high
literacy rate thus it is easier for people of the country to adopt the Smartphones which
makes the market for manufacturing dominating in the industry. As per the survey
conducted by Deloitte in 2017, it has been identified that usage of smartphones have
increased significantly and with an increase in new features in the smartphones the same
is expected to increase further as new features in smartphone helps in making routine
tasks easier for the user of such smartphone (Deloitte, 2017). It has also been identified in
the survey that approx. 15.88 lakhs users use a smartphone for daily routine activities.
Also, it has been identified in the survey that about 91% of the employees of the United
Kingdom are using smartphones which shows an added opportunity for the smartphone
manufacturing companies as the demand for smartphones is high. The company should
focus on the middle segment employees having a low budget as the usage of smartphones
is more in such a segment and is a potential market for the companies. Also, the
population in the middle level is much more than a higher segment of employees and
users thus Eco-fone should conduct a proper market survey for such population as there is
a lot of opportunity in that market segment.
4

Task 2
2012 2013 2014 2015 2016 2017
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Chart Title
Laptop (%)
Smartphone (%)
Tablets (%)
Usage of Gadgets
Linear regression is a statistical method used to specify the relation between a dependent and
independent variable. Linear regression is conducted by the company above which specifies the
usage of different gadgets in different years in the United Kingdom. From the above analysis, it
can be seen that the usage of the smartphone has increased significantly and the smartphone is
used most amongst the three gadgets in the year 2017. Also, it can be seen that the other gadget
that is used after the smartphone is laptops. Linear regression has shown positive growth in the
usage of smartphones across several years thus indicating that there is an opportunity for the
smartphone industry to grow in the future. Linear regression helps in identification of growth but
it does not specify the impact of the same on other gadgets thus for solving such problem Eco-
5

fone can use regression analysis to derive the relation between laptop and smartphones (Shah, et.
al., 2017).
6

Task 3
Potential Smartphone market for older customers
Eco-fone wants to identify the new markets which are suitable for the company for its further
expansion in the United Kingdom. For identifying the potential market the company has
conducted market research which explores and identifies the areas where it is possible for the
company to generate and maximize revenue.
In a recent news article published by BBC, it is seen that the mobile manufacturing companies
are struggling to make a place in the market of the United Kingdom as the market has become
highly competitive. Also, the news specifies that the potential market which can be established
by the smartphone manufactures is for the people of old age. It has been noted that there has
been a significant increase in the usage of the smartphone by the people of old age in the United
Kingdom. The reason for the continuous increase of smartphone usage among old people is
because of the features which facilitate the daily activities and needs of the old people with ease
(Hunter, 2019). Also, smartphone companies in the recent phase have introduced several new
features like a mobile assistant, artificial intelligence and bigger screen which develops the
interest of old age people in using the smartphone as it helps them in conducting routine
activities. Also, it has been indicated in the BBC News article that about 71% of the electronic
payment is conducted by way of smartphones (BBC, 2017).
7

Task 4
In the above table, it is shown that if the company wants to expand its business the, in that case,
it will have some pros as well as cons in expanding such business (Ashe-Edmunds, 2019).
Balance scorecard is a technique used in the above table which allots points to the different pros
and cons. After the allocation of points, an average of pros and cons is considered. As can be
seen in the above table that the average of pros is more than the average of cons thus the
company should proceed in expanding the business to Kingston. Even if there are certain
limitations in expanding the business but the pros of expanding are more than the limitations thus
the company should expand its business.
8

Task 5
A.
If a company wants to acquire machinery for the expansion of business then, in that case, the
company would require to take loan and cost of loan payment per month would be computed
as follows:
Calculation of Monthly Cost of Mortgage Loan
9

B.
Representation of logos of commercial mortgage lenders of the United Kingdom is as follows:
10
Barclays Bank HSBC BankTESCO Bank
HALIFAXNATWESTPrincipality
Building
Society
Godiva
Mortgage

Task 6
Testing of Possible Difference in Net Taking of Two Shops
Two-Tailed Z- Test
As the company is having two shops and have to compare the variables then, in that case, the
company can use two-tailed Z-Test which would help in the testing of a possible difference in
net takings of two shops. Identification of similarities among the net taking of two shops should
be done by Eco-fone which would help in making decisions and guiding the company to
improved business practices.
Hypothesis
Alternative Hypothesis = H1> 0.05
Null Hypothesis = H0<0.05
Alternative Hypothesis = Net taking from the shops are not the same for the company.
Null Hypothesis = Net taking from the shops is the same for the company.
Given Information:
Formula =
Z Test = 1.4142
Details relating to the positive and negative aspects of the company are provided in the two-
tailed test. As it has been identified from the above analysis that the value of Z (1.41) is less than
1.96 thus the Null Hypothesis is rejected after the above study (List, et, al., 2016). Thus it can be
11

seen from the study that there is no significant relationship among the net takings of the two
shops that are considered as a variable for the above tests. The study suggests that the reason for
the difference in the two shops of the United Kingdom is because of the market and
environmental factors.
12