Report on Eco-Fone's UK Smartphone Market and Business Strategy

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Added on 2021/02/22

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This report provides a comprehensive analysis of the UK smartphone market for Eco-Fone, evaluating market trends, customer behavior, and potential for business expansion. The report examines smartphone usage among different age groups, particularly focusing on the increasing adoption by older customers in the UK. It includes a feasibility study for expanding the business to Kingston, considering both pros and cons, alongside cost analysis for a new building. Furthermore, the report assesses customer satisfaction levels and tests potential differences in net takings between two existing shops. Key findings highlight the growing importance of smartphones in daily life and the potential for Eco-Fone to capitalize on market opportunities by focusing on customer needs, operational improvements, and strategic expansion. The report concludes with important findings and recommendations for Eco-Fone's future business strategies.

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REPORT FOR ECO-FONE

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Table of Contents
INTRODUCTION........................................................................................................................3
1.Analysis of Issues for Eco-Fone Smartphones..........................................................................5
1.1 An Overview of the Mobile phone market in the UK........................................................5
1.2 Forecasting the UK Adult Smartphone use .......................................................................6
1.3 Smartphones - A potential market for older customers......................................................7
1.4 Feasibility of Expanding business to Kingston using Pros and Cons table.......................8
1.5 Costs of a New Building.................................................................................................... 9
1.6 Testing the Possible Difference in Net Takings in the Two Shops..................................11
1.7 Customer Satisfactions.....................................................................................................12
1.8 Quality Procedures........................................................................................................... 13
1.9 Conclusions & Important Findings..................................................................................14
REFERENCES........................................................................................................................... 15

INTRODUCTION
Eco-Fone is the company that sells smartphones and accessories in United Kingdom. It
has two shops one in Putney and another one is in Richmond (Lumber and et. al., 2017).
Currently, it is not selling laptop and tablets. In 2014 it has set up its shop in United Kingdom.
Present report will be focused on overview of mobile phone in the market of UK. It will
include current operations that will be carried out at the two shops in United Kingdom. It also
emphasizes on the discounted strategy that will be followed by the company for satisfy needs
and wants of consumers. Furthermore, it will include facilities that will be provided by
company to its consumers.

Analysis of Issues for Eco-Fone Smartphones
1.1 An Overview of the Mobile phone market in the UK
Smartphone is becoming an essential part of every person's life in UK. It is using for
playing games, doing online business and many more things that will become easier in the
present scenario. It helps in enabling faster network that will emphasize on easy
communication between people in the country. According to the survey that will be conducted
more than 34 percent of adults in UK are using smartphones (Torres and et. al., 2015). After
ending of a day 78 percent of adults are checking their phone before going to sleep that will
create impact on their eyes. Children whose age is between 16-24 years old are using
smartphones 100 times a day and 12 percent of age group between 16-19 years view it 200
time daily.
Age group between 16-75 year will use smartphones very often and 49 percent
between 16- 24 year old were using smartphones daily. Most of the people are also using
phones while crossing roads and 53 percent use while walking on the road. By seeing this
response from consumers it will be practised for changing behaviour of consumers towards
smartphone. In UK youngster are more engaged with smartphone that will create bad impact
on their health as well as personal life. It is recommended by doctors that children between age
group 16-18 years will have to take sleep of nine hours as it is the stage of growing that require
sufficient rest otherwise it will lead to obesity among them (Jacobs and et. al., 2017).
Smartphones in UK is destroying life of people as they are more addicted to it that will have
greater impact on their lives.

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1.2 Forecasting the UK Adult Smartphone use
Penetration rate
From the above graph it can be said that in 2012 penetration rate is 52% and it
gradually increases till 2017 as it is 85% . In UK use of smartphone is increasing day by day as
people are more addicted towards it. Younger age students are using smartphone at large extent
as they are spending their most of time in smartphone. While walking, crossing the road also
people are using smartphone in UK. If this situation is going on continuously then it was
expected in 2018 its percentage is increasing at fast pace at 93.70% and while coming 2019 it
is expecting of increase is 100%.
Linear forecast will not work properly as it doesn't give clear understanding of data that
will be provided through this graph (Pulakhandam and et. al., 2018). Time series model is
2012 2013 2014 2015 2016 2017
0%
10%
20%
30%
40%
50%
60%
70%
80%
90% f(x ) = 0.0651428571x + 0.482
2012 2013 2014 2015 2016 2017
0%
10%
20%
30%
40%
50%
60%
70%
80%
90% f(x ) = 0.0651428571x + 0.482
P e n e tra ti o n R a te s
L in e a r (P e n e tra ti o n R a te s )

used for analysing data that smartphone users are increasing day by day. As this model help in
getting accurate statistics that will help in providing expected rate for the year 2018 and 2019.

1.3 Smartphones - A potential market for older customers
In UK 71 percent old people are using smartphone in the country. In research it will
found out that old age people are more addicted towards smartphone. As they are using mobile
phones more as compared to younger age people in UK. It will be analysed that 20 percent of
people are checking their phones in 15 minutes as compared to other country people as 56
percent only. Smartphone is facilitating various things as through this payment can be made
easily and they do not have to go out for it (Meusel and et. al., 2018). Through its different
features like there are so many apps that will help older people to go from one place to another
so it is useful for them. Modern smartphones are bigger so that it will help older people to see
properly as their eyes are not affected from it.
As Apple is providing various features in its phone that will help in providing different
facility to older people. Apple is adding many new features into its phone that might like by
older people and helps in facilitating different applications that will be used by them and it will
provide comfort to them. Older people think that smartphone will facilitate many things as by
just picking it many works can be done through from it. It will be helpful for older people that
by sitting at one place different work can be completed at a particular point of time (Brenner
and et. al., 2015). According to the survey that will be conducted it will be found out that 50
percent of older people are using Facebook. Therefore, it can be said that older people are more
addicted to smartphones.

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1.4 Feasibility of Expanding business to Kingston using Pros and Cons table
Should we expand our business to Kingston?
Pros Score/10 Cons Score/10
Market share 10 Expensive 9
Increase productivity 8 Increase in cost 8
Time consuming 4 Create Distraction 7
Web surfing 9 Battery life 5
Communication 8 Climatic condition 7
Education 7 Time wasting 6
GPS 6 Too much convenience 4
Total Pros 52 Total Cons 46
Average Pros 7.4 Average Cons 6.5
From the above table it can be concluded that it will benefit for the company to expand
its business to Kingston as it is important to increase market share that will help in gaining
more competitive advantage and larger market extent. It is necessary for the company to
increase its share. It also helps in increasing productivity as productive work will be done
through smartphone. It is time consuming as it will facilitate different activities that will be
providing different perspective for the future. It also enhances educational knowledge that will
help in expanding market into different segments. GPS will help in going anywhere in the
country without wasting of time (Baruah, Das and Manna, 2019). There are different
segments that will increase share in the market. From the average it can be said that pros are
more as compared to cons as it will be benefit for the future as productivity will increase that
will help in earning more profit in the country. Through this communication improve that helps
in enhancing various aspects that will be creating more opportunities. Through web surfing it
will provide information regarding market trend that helps in gaining knowledge of different
market in the country. Therefore, it is feasible to of expanding business to Kingston.

1.5 Costs of a New Building
Asking price 400000
Negotiable price 350000
15 years
Repayment mortgage 350000
Debt payment [((1+0.07)^15)-1]/[0.07*(1+0.07)^15]
Total amount of loan / Discounting factor 1.76/0.19
9.11
350000/9.11
Total amount of loan 38419.32
Repayment amount on monthly basis 38419.32/12
3201.61

From the above calculation it will be interpreted that negotiable price is 350000 while the
dealing price was 400000 and the deal is done for 15 years. Amount of loan that will provided
to customer is 9.11 after applying discounting factor into the cost and the rate of mortgage is 7
% while the repayment mortgage amount will be 35000. Total amount of loan will be
calculated by dividing repayment mortgage by discounting factor. Therefore, amount of loan is
38419.32 and repayment amount on monthly basis will be 3201.61. Hence, it will be said that
mortgage rate will have an impact on repayment amount that will be given back to the lender
(Zaman, 2018). Debt will be provided to customer by deducting discounting amount from
mortgage rate that will provide amount of loan that will be given to enhance various factors
that will affect cost of building in the future. Therefore, costing that will be provided to lender
will have to pay 3201.61 on monthly basis.
LOGO OF BANKS
1.6 Testing the Possible Difference in Net Takings in the Two Shops
Given

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Particulars Figure
Sample 40
Average 100s
Standard deviation 20
Second shop
Mean 90
Standard deviation 40
H0: Null hypothesis: There is no significant difference in net taking of two shops.
H1: Alternative hypothesis: There is significant difference in net taking of two shops.
Assessment of Z score value
Table 1
Mean value of one shop 100
Mean value of second shop 90
Standard deviation (one shop) 20
Z score assessment (100 – 90) / 20
0.5
Table 2
Mean value of one shop 100
Mean value of second shop 90
Standard deviation (two shop) 40
Z score assessment (100 – 90) / 40
0.25
From the above calculation it will be assessed that z score assessment of table 1 is low
as compared to table 2 that will have significant difference in net takings of two shops. Both
value is greater than 0.05 so it will consider as null hypothesis (Rosińska-Bukowska, 2019).
There is no significant difference between net takings in both shops.
1.7 Customer Satisfactions

Ques 1 Ques 2 Ques 3a Ques
3b
Ques
3c
Ques
3d
Ques
4 Ques 5 Ques
6
Mean 2.95 2.89 1.98 2.50 3.25 2.51 2.51 2.52 3.71
Standar
d 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
Standar
d
Deviati
on
1.48 0.95 0.84 0.87 1.25 1.07 1.19 0.92 1.15
Sample
Varianc
e
2.18 0.90 0.71 0.76 1.56 1.13 1.41 0.84 1.33
Kurtosi
s -1.46 -0.72 0.24 -0.65 -0.82 -1.21 -0.17 -0.13 0.24
Skewne
ss -0.03 -0.27 0.75 0.26 -0.89 -0.16 0.84 0.47 -
1.10
Range 4 4 3 3 4 3 4 4 4
Minimu
m 1 1 1 1 1 1 1 1 1
Maxim
um 5 5 4 4 5 4 5 5 5
According to above table it can be interpreted that majority of people are in favour with
the product that is sold by Eco-Fone in the market. It is found that there are many people that
are using mobile phone of the company. It can be said that there is difference in variance
between products that will create difference in standard deviation through this it will lead to
slow growth in company in the future (Harter and Easter, 2018). On the basis of above table it
can be said that effective growth will occur and increase in profitability of business will help in
achieving success in the future.
I