Eco-Fone: Detailed Business Expansion Report for Kingston Market

This report analyzes the potential for Eco-Fone, a smartphone and accessories retailer, to expand its business from Putney and Richmond to Kingston, UK. It begins with an overview of the UK mobile phone market, providing statistics and a mixed bar chart comparing 2016 and 2017 data. The report then forecasts smartphone usage among UK adults, utilizing linear and exponential smoothing methods to predict future trends. It also explores the potential market among older customers, highlighting the increasing adoption of smartphones by this demographic. Furthermore, the report conducts a pros and cons analysis to evaluate the feasibility of expanding to Kingston, considering factors such as market share, brand awareness, and employment opportunities. The report also examines the costs associated with a new building, including mortgage calculations and a list of UK commercial mortgage lenders. Finally, it compares the net takings of Eco-Fone's two existing shops and includes a customer satisfaction survey to gauge customer feedback on products, services, and overall satisfaction.

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REPORT FOR ECO-FONE

INTRODUCTION
Smartphone is an electronic device which is widely used by almost all generation as it is
portable and has multi purpose functionality feature that can be used for various purposes like
entertainment or surfing (Abi Ghanem and Mander, 2014). For the better understanding Eco-
Fone company has been selected that deals in smartphones and other accessories associated with
phones from Putney and Richmond. With the growth opportunity company is planning to expand
the operation in Kingston with the motive to enhance the market share. This report cover topics
like overview on the mobile market within UK and forecast the UK market to identify the adult
use of smartphone. Define the potential market for old customer and expansion of business in
Kingston. Moreover, examine cost of new building, customer satisfaction and quality procedure
are covered in this report.
TASK 1
1.1: Mobile phones market in UK
a) Overview on mobile phone market within UK
Mobile phones is cellular telephone that has integrated computer system which allow it to
run various software application (Global mobile consumer survey. 2017). With the passage of
each year the use of smartphone is continuously goring because it has made the lives easier and
exciting. Like, the content posted thorough smartphone widely receives the attention of customer
and compel them to make the quick decision. According to the survey which was conducted by
Deloitte for UK, it has been observed that people have habit to carry smartphone everywhere and
scroll it most of the times. For instance, around 17% of the people who fall under age group of
16-24 years old look their mobile or smartphones for at-least hundred times a day which can be
while eating or studying. As smartphone allow the user to perform various work related activity
due to which as per the information of 2016- 2017 at least 37% residence of UK access
smartphone for email while 32% for voice call. This depict that more than half of the workforce
of UK that is approximately 32 million depends upon smartphone to perform their work. Thus,
for this they uses internet to make voice calls, check or post emails, calender management and so
on.
b) Prepare mixed bar chart for the year 2016 as well as 2017

TASK 2
1.2: Forecast smartphone use for UK adult
Although smartphone is more used by the teenager or young adult in comparison to old
adult but in future these adult are expected to penetrate 90% of market. This mean it is widely

used device for adult in comparison to other electronic devices like laptop (Abramovici, 2014).
As per the 2012-17 report prepared by Deloitte on the basis of linear forecast method the usage
of smartphone, laptop and tablet among adult is 85%, 78% and 68% respectively. Therefore,
which mean smartphone is at lead and use to book the cabs, take the appointment, generate news
feeds and weather forecast report (Smartphone sales boom with over-55s, 2019). Along with that
as per the forecasted data of 2018-19 it has been depicted that through the graph the user of
smartphone will increase in coming year.
Further, linear forecasting method is considered less effective for this method because the
trend of each year is not growing or decreasing with the same rate which makes it less desirable
to predict the future. Thus, in this case with the help of Exponential smoothing algorithm method
the data of of 2018 and 2019 is predicted.
TASK 3
1.3: Potential market of smartphone for older customer
On the basis of past information by Deloitte report it has been examined that due to multi
purpose usage of smartphone like entertainment or video calling old age customer finds interest
to explore various features of handset (Premkumar and Nigel, 2015). So by 2022 old age people
will penetrate huge market of UK and will be keen to buy latest version instead of satisfying the
need by old version or second hand set. Thus, overall there will be the huge market for
smartphone for last five years. As both the old and younger generation are keen to adopt latest
technology but this ratio is more for new generation who are fast or early adopter while older

generation are likely to be laggard. Additionally, old age residence are shifting forward due to
which they are more likely to purchase luxury handset of premium quality instead of taking the
old used phone of their family members (Bagga, Noseworthy and Dawar, 2016). Moreover,
convenience or the features of phone help the adult to overcome their problem like, if one suffer
from hearing problem then they can use the loud speaker option or use handset which will helps
them to conduct effective communication. Along with that large size of screen or by increasing
the size of text assist the adults to engage into the device. Easy access to book appointments, take
online consult, check the time of local transportation help the old age people to reduce the
dependency on other family members and perform such activity by their own. Therefore, even
the company need to analyse the target market and come up with additional attributes for the
convenience of customer (Thomas and Bond, 2014).
TASK 4
1.4: Expansion of business to Kingston
Should Eco Fone expand its business to Kingston?
Pros Score/10 Cons Score/10Eco
fone
With the huge growth
opportunity in the
market of smartphones
due to increase usage by
old age people Eco-
Fone can take this
advantage and can
diversify its business in
new geographical
market that is Kingston.
7 Diversification require
capital investment due to
which Eco-Fone needs
to look various sources
to generate the fund and
it is not necessary that
the firm will only
generate revenue by
shifting to Kingston.
7
This will help the
company to enhance its
market share by
generating the brand
awareness while dealing
in smartphone and other
accessories (Schmitz
Weiss, 2013).
8 There are various
external factors like
political stability, tax
rates, competitive
pressure, social culture,
interest rate etc. which
need to be analysed by
the Eco-Fone as it can
directly affect the
performance of
company.
7

This will even help the
company to reach out to
the potential candidate
and generating good
source of income from
other territory as well.
6 It is risky situation for
the company because
even after conducting
extensive research there
is tough possibility to
mitigate the chances of
risk (Chang, Shen and
Liu, 2016).
6
It also boost up the
employment rate as
expansion leads to
employment opportunity
to conduct the better
sales of company which
increases the investment
rate.
8 Expansion leads to
threat as it may become
difficult for the company
to gather the trust of
customer and compel
them to purchase their
product rather than
competitors.
6
Total Pros 29/40 Total Cons 26/40
Average Pros 0.72 Average Cons 0.65
Thus, on the basis of several pros and cons regarding the expansion of Eco-Fone to
Kingston the average of total pros is greater in comparison to total cons that is 0.72 and 0.65
respective. This is a clear indication of expansion.
TASK 5
1.5: Cost of a new building and well-known commercial mortgage lenders in the UK
a) Calculation of monthly payment of mortgage loan
Expansion of Eco-Fone business from Putney and Richmond to Kingston require
financial resources for which the company can analyse different sources of fund like financial
institution (Haberman and et.al., 2015). In case of repayment process company can pay back the
principle amount along with interest in instalments. The calculation is stated below:
Loan Amount £350000
Number of EMIs 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
There are various banks that offer credit facility such as HSBC – UK Mortgage Lenders
and NatWest Commercial Mortgages. Moreover, loan is paid for various purpose for which the
bank manager collect the document, ask for mortgage and check their creditworthiness on the
basis of repayment of past loans. Within UK there are various company that extension the credit
facility for business and personal purpose.
b) logos of mortgage lender within UK
1. HSBC – UK Mortgage Lenders
2. Lloyds Bank
3. THINK Business Loans Commercial Mortgages

4. Bank of Ireland
5. Santander Group
6. NatWest Commercial Mortgages
7. Barclays
8. Royal Bank of Scotland

TASK 6
1.6: Testing the Possible Difference in Net Takings in the Two Shops
Currently, Eco-Fone perform its business with the help of their two shops that is Putney
and Richmond. The company started their dealing in smartphone and accessories by 2014 and
has generated sound revenue due to increasing demand of such device (Koch and Kerschbaum,
2014). Thus, the net taking of these shops are defined below:
Particulars Putney Richmond
Mean 120 100
Standard Deviation 40 50
Sample data set 60 50
Total Net Daily
Takings
7200 (120*60) 5000 (100*50)
On the basis of comparison the sample data set or net daily taking of Putney is 60, the
mean of it is £120 as well as standard deviation that measure the risk is £40. Whereas, on other
side Richmond that is other shop of Eco-Fone has 50 sample data. Along with that the amount of
mean and standard deviation for second shop is £100 and £50 respectively. This shows that the
sales of company for smartphones from both the store differ. Further, the standard deviation of
Richmond is higher from Putney that means the sales of second shop are more unstable. Hence,
the net daily taking or footfall of Putney is7200 which is higher than Richmond which comprise
sales of 5000.

TASK 7
1.7: Customer Satisfaction
1. When smartphone or other accessories was bought from Eco-Fone store?
Within the last month
Between 1 month and 3 months
Between 3 and 6 months
Between 6 months and 1 year (✔️)
Never
2. For how long our products or services are being used?
Fewer than 6 months
Between 6 months and 1 year
Between 1 and 3 years
Between 3 and 5 years (✔️)
More than 5 year
Never
3. Kindly, rate us based on the numbering where (4=excellent, 3=Good, 2= Fair and 1=poor
)
Basis 4 3 2 1
Customer service/support (✔️)
Quality of products/services (✔️)
Sales staff (✔️)
Price/value (✔️)
4. Please rate your overall satisfaction within store and while availing service?

Very satisfied
Satisfied (✔️)
Neutral
Dissatisfied
Very dissatisfied
5. How likely you will continue shopping with us?
Very likely
Likely (✔️)
Neutral
Unlikely
Very Unlikely
6. How likely you suggest our products?
Very likely (✔️)
Likely
Neutral
Unlikely
Very Unlikely
7. Please recommend how we can improve our products/services to better serve you.
On the basis of the response generated from the respondent the customer are satisfied in
terms of quality of product due to which they are likely to move back to the same centre and
recommend as well well. This is green signal for company but on contrary Eco-Fone should
provide training to their staff who are in direct touch with the ultimate user. Moreover, the
experience of customer with sales staff was fair so the company needs to focus more to enhance

the skill of an employee. This make them competitive to persuade the customer to buy the
product and handle their query effectively.
TASK 8
1.8 Appropriateness of Poisson distribution in context to Eco-Fone
Poisson Distribution is a statistical probability theory that help the firm to determine the
chances of profitability for the specific time period. Herein, Eco-Fone can use such framework
to track the performance of the event that occur for the specific time period which can satisfy the
condition of Poisson distribution. The distribution network or the condition that pertain within
the organisation are an independent entity (Pan, Superior Communications, 2016). Due to which
in case of occurrence of an event do not either directly or indirectly affect the profitability
associated with the other event. Hence, Eco-Fone can use Poisson Distribution to display long
term as well as short term business profitability.
CONCLUSION
From the above report it has been concluded that smartphone has become one of the
valuable part of every need beat younger generation or the older ones. This mean that the
innovation and essential attributes within smart devices has made the lives more easier because
of convenience to perform various activity with the help of just single click. Moreover, there is a
huge opportunity for firm to cater the need of UK adult by bringing modifying in the product.
Like, easy design of product and attribute like loud speaker for handling the tool has provide
convenience to get the appointment and save the time and cost. Further, in case of diversification
of product company needs to examine the external factor as well as pros and cons in order to
expand the business. Hence, this help the company to diversify and satisfy the customer
experience in order to gain long term development.

REFRENCES
Books and Journal

APPENDIX
Task 2
Forecasting 2018-19 data by using linear forecast
Year
Smartphones Use by
adults
2012 52%
2013 62%
2014 70%
2015 76%
2016 81%
2017 85%
2018 94%
2019 94%
Calculation of 2018-19 year data by using Exponential Smoothing (ETS) algorithm
Year Smartphones Use by
adults
2012 52%
2013 62%
2014 70%
2015 76%
2016 81%
2017 85%
2018 91%
2019 98%