Eco-Fone Case Study: Market Analysis and Business Expansion Strategies

This case study analyzes Eco-Fone, a smartphone and accessories business with two existing shops, exploring its market position and potential for expansion. The report examines the UK mobile phone market, highlighting increasing smartphone usage, especially among older demographics. It assesses the feasibility of expanding into Kingston, weighing the pros and cons, and considers financial aspects like mortgage loans for a new building. The study also analyzes customer satisfaction through questionnaires and evaluates quality procedures using Poisson distribution to predict invoice errors. The findings reveal insights into market trends, customer behavior, and strategic considerations for business growth, providing recommendations for Eco-Fone's future operations and expansion plans. The analysis includes financial data, customer feedback, and statistical methods to provide a comprehensive overview of Eco-Fone's performance and potential.

Case study
project

Table of Contents

INTRODUCTION
Market of smartphone is increasing because people are showing there much interest in
using latest technology (Schmitz, 2013). As per the given case study respective report is based
on Eco-Fone business firm that mainly deals in Smartphone and their accessories. Respective
organisation have mainly two shops one is in Putney and another is Richmond. At present Eco-
Fone is not offering laptops and tablets as well they are thinking for business expansion within
Kingston. This report will going to discuss information of products, customers and financial in
relation of Eco-Fone company. In addition to this, overview related to mobile phone market of
United Kingdom will explain.
TASK 1
Overview of mobile phone market in UK 250
According to the conducted survey by Deloitte which is related to the usage of
smartphone in the market of United Kingdom. It has been identified that utilisation of
smartphone is increasing which have its direct as well as optimistic effect on enhancing sales by
1.5 billion per annum. In UK, presence of Smartphone is 58% among adult people and it has
been anticipated that presence will reach up-to 90% by 2020. In addition this, uses percentage is
expected as increasing because youngsters and old age people are getting attracted towards
smartphone as it help in their daily basis activities within workplace. As smartphone have such
features on that particular person will able to do their office work such as approx. 33.5 million
people are employed out of which 32 million are using smartphones for doing work related to
job. Smartphone aids in conducting several activities like messaging, calendar management,
voice calling, E-mails and so many.
TASK 2
Prediction of adult smartphone utilisation in United Kingdom
After conducting survey it has been analysed that, 17% of population who come under
the age group of 16 to 24 years are using mobile phones approximately 100 times within single
day (Global mobile consumer survey, 2017). Along with this, 12 percent population of same age
group has claim that 200 times in a day they check their mobile phones. Apart from this, 34% of
people who comes under the age group of 16 to 75% are addicted for uses of mobiles they are

even this must addicted that while having food also they use as well as when sitting with friend
or family members. This same habit is found in 49 percent of population between the age group
of 16 to 24 years as they also use mobile phones while having food or sitting with someone.
Further more, 11% population who come under age group of 16 to 75 years use there mobiles
when they are crossing roads as well as more than 53% people of same age group use while
walking on the road. Thus, from overall survey it has been found that utilisation of smartphone
usage is founded more in age group of 16 to 75 years old people in comparison of other peoples.
TASK 3
Smartphones-A potential market for older customers
According to the views of Leo Kelion, 2017 it has been identified that sale mobile phone
is getting boomed with old customers within UK, as per the case study of market. From research
it has been identified that, 71% of population who come under the age group of 55 to 75 years
own smartphones as well as they adopt technology in fast manner as compare to other age group
within last five years. In addition to this, research which is conducted by Deloitte same size of
that is 1,163 in comparison of youngster people of 55 to 75 years are utilising smartphones more
(Smartphone sales boom with over-55s, 2019). apart from this, people who have income or
wealth above average purchase premium class handsets.
TASK 4
Feasibility of expanding business to Kingston using Pros and Cons
Should we expand
business
Yes, For Eco-Fone market of Kingston market will be
advantageous for business expansion.
Pros Score/10 Cons Score/10
Business expansion for
Eco-Fone in Kingston
help in increasing their
customer.
8
Major cons is that Eco-
Fone need huge capital
for their operations
while expanding
business in the market
area of Kingston.
7
Business expansion will
6
There are several
6

help respective
organisation in
increasing there
visibility as well as
name within market
area (Chang, Shen and
Liu, 2016).
problems which
company face while
expanding and these
problem will be related
to policies and
regulations of local
governments.
Through business
expansion Eco-Fone get
opportunity of
understanding new
culture as well as they
will able to improve
production process by
hiring new and talented
local residence.
8
Respective smartphone
organisation may face
issue related to language
while expanding
business in Kingston
which may hamper there
working as well.
6
When Eco-Fone
expanding there
business in Kingston
they can enhance
profitability as well as
customers bases.
7
Eco-Fone will face large
number of competition
which directly and
indirectly give wide
impact on there working
(Bagga, Noseworthy and
Dawar, 2016).
8
Total Pros 29/40 Total Cons 27/40
Average Pros 0.72 Average Cons 0.67
TASK 5
Cost of new building

Mortgage loan is simply debt instrument as well as advance paid money that is given by
bank against property of loan taker which given as security. Such type of loan is mainly taken by
the individual who want to purchase any property like home, land and many more. In addition to
this, mortgage loan is secure because in this lender can forfeit property in the situation when loan
taker get fail to pay amount (Premkumar and Nigel, 2015). There are several components which
are involved within mortgage loan like principal, tax, insurance and interest. There are several
firm in UK which are offering mortgage loan explanation of these are as follows :-
1. THINK Business Loans Commercial Mortgages
2. B2B Finance.Com Commercial mortgages
3. NatWest Commercial Mortgages
4. Royal bank of Scotland Commercial Mortgages

5. Together Commercial Mortgages
6. Alliance & Leicester plc.
7. bank of Ireland
8. HSBC – UK Mortgage Lenders

TASK 6
Testing the possible difference in Net takings in the two shops
From the below mention table, net daily undertakings of Eco-Fone retail shop i.e., in
Putney and Richmond is analysed. As these both stores offer discount in mobile phones as well
as accessories and they are running for several months.
From the shop which is located in Putney, sample is of 40 net taking have mean of 100
Euro and standard deviation is £20. On the other hand, another shop that is in Richmond also
have same sample data set i.e., 40 and gained profitability of £90 as well as its standard deviation
is 40 Euro. Thus, from the entire interpretation it has been identified that owner of Putney
location shop is gaining more profitability instead of second shopkeeper. Due to the increment in
sample size and mean it has been expected that variable will get reduced.
But within the first case, which have sample size of 40, £100 is mean and standard of
variation is £20. whereas, second shop with same sample size has got less mean with high
variability (Thomas and Bond, 2014). Thus, these two stores don't take similar net taking as well
as profitability in relation to reliability and validity. So, second store have to re-design their
strategies related to discount and offerings.
TASK 7
Customer satisfaction
1. When was the last time you purchased a product or services from us?
 Within the last month
 Between 1 month and 3 months (.)
 Between 3 and 6 months
 Between 6 months and 1 year

 Never
2. How long have you used our products/services?
 Fewer than 6 months
 Between 6 months and 1 year
 Between 1 and 3 years (.)
 Between 3 and 5 years
 More than 5 years
 Never
3. Please rate us on the following: (Please tick one: excellent=4, Good=3, Fair=2,poor=1)
Basis 4 3 2 1
Customer service/support (.)
Quality of products/services (.)
Sales staff (.)
Price/value (.)
4. How would you rate your overall satisfaction with us?
 Very satisfied
 Satisfied
 Neutral (.)
 Dissatisfied
 Very dissatisfied
5. How likely are you to continue doing business with us?
 Very likely (.)
 Likely
 Neutral
 Unlikely
 Very Unlikely
6. How likely are you to recommend our products/services to others?
 Very likely (.)

 Likely
 Neutral
 Unlikely
 Very Unlikely
7. Please suggest how we can improve our products/services to better serve you.
From the above mention questionnaire and its result, this has been identified that Eco-
Fone has a successful with satisfied customers. Such type of customers will indulge within
business future transactions and from them loyalty will be observed. This will result in usage of
smartphone for minimum 3 to 5 yeas. Quality rated by customer of Eco-Fone offering is 4 which
state excellent but there is requirement of improvement within sales staff.
TASK 8
Quality procedures
Poisson distribution is simply related to statistical distribution that reflect how many
probable number of times an event will occur within specific time duration. Respective
distribution method is useful for independent events that occur at constant rate in given time
interval (Koch and Kerschbaum, 2014). In addition to this, poisson distribution is discrete
function which simply means that an event can measure as its occurring or not, meaning that an
variable only be measured in whole numbers.
For Eco-Fone quality procedure meet it has been advice that, they have to analyse that
average of two return cheques an error per month retained because of an average within last two
months. Along with this, average is calculated through cumulative frequency by the received
cheques from person. Although, there is possibility of meeting quality assurance process with
invoices more than three that can differentiate invoice return percentage rate for Eco-Fone
smartphone company. Poisson distribution method is most suitable for Eco-Fone as this
organisation work as independent nature and have continuous rate of happening events generally
on monthly basis (Abi Ghanem and Mander, 2014). This statistical distribution will help
company in predicting occurrence of two returned invoice which have an error. Along with this,
respective distribution also show probability of happening events after fixed duration.

CONCLUSION & FINDINGS
From the above mention assignment it has been summarised that utilisation of mobile
phones in UK in increasing on daily basis. Along with youngsters, old age people are more found
of using latest smartphone which include several features such as Bluetooth, large screen, Wi-Fi
and so on. In addition to this, it is essential for an organisation to conduct proper market research
while expanding their business at international level. Such as an organisation have to analyse
pros and corns of expanding business operations as well as their functions within particular
market area. Furthermore, for an business firm questionnaire is the best method by that
feedbacks related to current products will be gain. As well improvement will be done according
to the requirements.

REFRENCES
Books and Journal