Eco-Fone: Analysis of UK Smartphone Market and Business Expansion

This report provides an in-depth analysis of Eco-Fone, a smartphone and accessories retailer with shops in Putney and Richmond, focusing on the UK market. The report examines the company's performance since its establishment in 2014, highlighting increasing net incomes and emerging market trends, such as the growing adoption of smartphones by older customers and the difference in net earnings between the two shops. The analysis includes an overview of the UK smartphone market, forecasting adult smartphone usage, and assessing the feasibility of business expansion, including cost analysis of a new building. The report also explores customer satisfaction and provides statistical data from 2016-2017 to support its findings, offering insights into market dynamics and strategic recommendations for Eco-Fone's future growth and expansion plans.

PARAPRHAZE

TABLE OF CONTENTS
INTRODUCTION.......................................................................................................................................4
1. Issues analysis of Eco-Phone smart phone...............................................................................................4
1.1 Overview...........................................................................................................................................4
1.2 Forecast the adult smart phone use in UK..........................................................................................5
1.3 Smartphones - A potential market for older customers......................................................................5
1.4 Feasibility of Expanding business to Kingston using Pros and Cons.................................................6
1.5 Costs of a New Building....................................................................................................................7
1.6 Testing the Possible Difference in Net Takings in the Two Shops....................................................8
1.7 Customer Satisfaction........................................................................................................................8
REFERENCES..........................................................................................................................................11

INTRODUCTION
Eco-Fone is a smart phones and accessories seller and has two shops, one being in Putney
and one in Richmond and the company does not sell laptops and tablets. The net income of the
company is increasing each year after the company opened set up’s in 2014. There are a lot of
trends which the organization has observed in the customers which is that the elder people
purchase smart phones for the very first time in the society. There is a difference in the net
income of both the shops which is the second observation which the company has made in the
market. The report consists of United Kingdom’s market evaluating in the mobile market and
there are going to be comments on the statistics which is given in the market. The statistics
consist of 2 years period of the activity in the country of smart phones.
1. Issues analysis of Eco-Phone smart phone
1.1 Overview
There is a substantial increase in smart phones in UK due to increase in the technology
and better display quality. There are many more applications which help customers in day to day
routine and improve their efforts to achieve objectives effectively. Smart phones have changed
the way to do business and also support economic activity to gain better profit margins
effectively. Network service providers are directly related to the mobile phones company and
they are also growing their network to provide better network coverage and better experience.
Internet is one of the most useful platforms in the current scenario which allows customers to
gain information about anything and the medium to gain better information is smart phones and
it helps to optimize the searches according to needs and wants of specific customers effectively.
It is analyzed that customers in UK has increased the use of digital applications like, email,
calling, video conferencing which helps to increase the communication in the nation effectively.
This also helps to grow economic activity of UK effectively and provide better facilities to
citizens. Smartphones has also changed the behaviour patterns of customers to make decisions
for any products in market with the help of digital marketing and catchy advertising many
companies are growing rapidly and improving their services to increase satisfaction level of
customers effectively. It is also examined that large screen smartphones are more effective for

the professional use as it provides better display size and high quality resolutions to
communicate effectively. There are many user interfaces in smart phones which integrate with
work easily to reduce cost and increase efficiency.
1.2 Forecast the adult smart phone use in UK
The 2nd figure shows the forecasting of the penetration of the adults in the smart phone
industry of United Kingdom in the years 2012- 2019. The right line of linear forecast could not
have been drawn in this figure because of the growth not being steadily in nature. The suitable
linear which can be used in this case is the poly linear. In the year 2012 there was a usage by
52% of the smart phones and 10% increase in the year 2013 which made the total rise to 62% of
the usage. There was a growth by 8% in 2014 which made the total 70% and by the end of 2015
there was a growth by 6% which resulted in 76% by 2015. There was a growth by 5% and 4% in
the years 2016 and 2017 respectively which made the total increase to 85%. This is a small scale
survey and can be used in much more report. Around 37% of the people who owned smart
phones used it for receiving and making emails in 2017 and 32% of the people used it for voice
calling (Deloitte 2017).It is visible in the statics that 71% of the people between 55 to 75 years
old people have custom app. There is a faster adoption rate over the last five years which can be
added in the study of the statistics. There is a lesser use of smart phones by the adults of the
company than the younger people.There is a 50% installed Facebook compared to the 705 of the
adults. The statistics are of 163 people which were interviewed from May to June in the present
year. Deloitte (2017), also said that the people between the age 55 to 75 years old tend to buy
premium phones in the market, when they do not used half of the applications and use it as a part
of the children’s handling. There was a sense of obligation in the clients when they purchased the
smart phone for the very first time.
1.3 Smartphones - A potential market for older customers
Some elderly people have highly benefited, when some specific changes was made in
smartphones in last few years. Latest and modern smartphones are really have too larger screens,
so elderly people get very satisfied with this feature, because screen size of existing smartphones
are much better than smartphones which was provided by smartphone companies few year ago.
There are operating system has been developed too easier for using, because now an old age

person no need to get huge knowledge of app installing in android phones. Reason is, now an
elderly person can easily install an application with on click (Mupamhanga, 2016). They only
need to go on Google’s play store, and then need to search that application which it wants to be
installed. On the other side, currently Apple has lots of options in iOS’ integrated usability too.
Currently, Apple and Samsung are putting their huge efforts in smartphone innovation,
because they always trying to provide those features and specifications in their smartphones
which an elderly person also can easily use. That’s why these both companies have large market
share in the smartphone industry. There is hi-fi technology within smartphones always creates
some difficulties for old person, because most old age people are still relating to traditional
mind-set, and also most old age people no has huge knowledge of modern technology.
According to research that, elderly people are highly like fingerprint feature in modern and latest
smartphones, because now they no need to remember different passwords to enter the
smartphone. Currently many smartphone companies have provided health indicator also which
support to an elderly person for properly maintain their well-health. Basically, existing
smartphones are providing high comfortability to elderly age people, they really enjoying
existing modern smartphones.
1.4 Feasibility of Expanding business to Kingston using Pros and Cons
Nibusinessinfo.co.uk is the website which gives information about Eco-Fone through the
table that business must expand in the UK country because there have various opportunity which
can help to expand business in wide scale. By the table determines several cons like staff
turnover, legal results and regulation, employment law etc. which can cat as resistant in the
business expansion. but there have various opportunities i.e. government stability from past few
years, high availability of suppliers which can support to expand business on wide scale in the
UK. To expand business in another town is not big deal but cons average is too high as compared
pros average that gives advice for not expanding business in the UK. Let’s talk about cons
average i.e. staff turnover is too low is the main reason for not expand.theSeconds is shortage of
cashthat cause can’t expand business because it requires more investment and high control.
When control is lost while investing funds as result can’t expand business in UK. When
organization wants to expand it’s business then needs to evaluate overall cons reason for
minimizing the scores (Handke, Quintaisand Bodó, 2018). To retain staff within workplace

needs to meet their objectives by owner instead of asking the staff to give extra hours except
working hours. In addition, owner must take care of the staff to keep them stress and frustration
free at workplace and avoids extension of shifts as result gets desirable result at workplace. Apart
from this, owner must recruitstrained local staff so they can help business to generate high
revenue but the recruitment process can cost more money. Owner must employ local manager
for the company who is highly qualified and executes the business in new platform. Economical
performance is required for expanding business.So, owner should have sufficient money which
can help to expand business effectively. To expand business in the UK is the main goal of owner
which is very hard to meet and suggestion is to keep deep research of market and cautious with
each movement.
1.5 Costs of a New Building
Business expansion is an strategic tool utilises to take competitive advantages in the
market and also to expand the growth potential of company in target market. Eco-Fone Company
is also looking to achieve more effective growth potential in market. In such a process to
improve the growth opportunities company management in looking to open up new outlets in
Kingston. Business expansion plan also needed financial investment as the company needs to
acquire different assets and infrastructure which also seeks financial resources. Kingston
Company also needs to acquire shop in Kingston. Company can also rent a shop in the target
locations to expand the business. As per the market research company management is looking to
open the new store in the central part of Kingston. As the locations provide effective business
opportunities. As the central Kingston is famous market place the investment for acquisition is
also high in such a area as compare to other part of the Kingston. The estimated cost to acquire
shop in that area is expected to be worth £350,000. Management of the company has analysed
investment figures which indicates that the total investment will cost £566,261.81 to the
company at the end of 15 years. Company is expecting the total investment require in acquisition
property in that location is £350,000. Company will take loan over such property which will
involve interest at the rate of 7%. The expected tenure for investment is estimated to be 15 years
which will cost £566,261.81 to the Eco-Fone Company at the end of 15th year. Based on the
statistical analysis it is estimated that company will bear £3145.90 on a monthly basis in against
to that investment. Company is planning to interact with different mortgage dealers that can
provide cost benefits to the company. The cheapest among all the dealers will be finalised.

In order to take property from the mortgage dealers such companies take property as a
protection against to the loan amount. In general case the buyers take loan approximately around
70% of total loan amount. Mortgage dealers also take another property in case the buyers do not
have any money in respect to buy the property. This is more like an investment scheme or an
insurance scheme.
1.6 Testing the Possible Difference in Net Takings in the Two Shops
The actual value obtained is (𝑥̅ 1 - 𝑥̅ 2) = £100 - £90 = £10
1.7 Customer Satisfaction
Customer satisfaction is an effective tool involved in the growth of the company.
Company’s growth and profitability immensely depends upon the level of customer satisfaction
organisation is able to achieve from its products and services. Company put huge investment of
resources in orders to conduct the marketing and promotional campaigns. The aim of al
marketing and promotional campaigns runs by Eco-Fone Company is to improve the customer
trust in respect to company’s products and services. Loyal customer base play huge role in
improving the sales turnover of the company. Loyal customers also support company in
promoting all its products as they suggest company’s products to other potential customers in
society. Different factors associated with the customer satisfaction directly improve the business
development and growth opportunities to the company in target market.

1.8 Procedures for quality
For obtaining more precise results instead of using binomial distribution,
Poissondistribution is given preference (Hussain, Griffithsand Sheffield, 2017). It can be
observed in appendix three and four. The quality assurance procedures have lower probability as
compare to that of returned invoice in particular month which also had an error percentage of
18%.

1.9 Findings and conclusion
It can be concluded from the above discussion on Eco FoneCompanythat modernisation
and simplification of the technology is the key reason for huge popularity of smart phones in UK
especially among elderly population. It has been also analysed that for expanding business to
other regions additional business cost is required. The success factor also depends upon customer
perspective and feedback on which company reputation and brand value is based upon. It has
been also evaluated that tools such as customer surveys are of great help when it requires
measuring the customer satisfaction and attitude towards organisation.

REFERENCES
Books & Journals
Mupamhanga, M., 2016. Customer experience with smartphones: a university student
perspective. (Doctoral dissertation).
Handke, C.W., Quintais, J. and Bodó, B., 2018. Truce in the Copyright War? The Pros and Cons
of Copyright Compensation Systems for Digital Use. Review of Economic Research on
Copyright Issues. 15(2). pp.23-56.
Hussain, Z., Griffiths, M.D. and Sheffield, D., 2017. An investigation into problematic. Journal
of Behavioral Addictions.