Eco-Fone: Business Expansion and Market Analysis Report

This report provides a comprehensive analysis of Eco-Fone, a UK-based private limited company operating in the consumer electronics industry. It begins with an overview of the UK mobile market, including smartphone penetration rates and usage patterns across different age groups. The report analyzes smartphone features and their impact on older customers. It then assesses the potential for Eco-Fone's expansion into Kingston, using a pros and cons method, and calculates monthly mortgage repayment costs. Furthermore, the report compares the net takings of Eco-Fone's two shops, analyzes customer questionnaire data, and applies the Poisson distribution to provide recommendations. The report concludes with a summary of findings and recommendations for Eco-Fone's future business strategies.

Eco-Fone

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Background of the mobile market in the UK...............................................................................3
TASK 2............................................................................................................................................5
Figures on Adults Smartphones Usage during 2012-2017..........................................................5
TASK 3............................................................................................................................................6
Analysing of the popularity of smartphones between older customers.......................................6
TASK 4 ...........................................................................................................................................7
Recommendation on the enlargement of the Eco-Fone to Kingston...........................................7
TASK 5............................................................................................................................................8
A. Computation of Monthly costs of repayment mortgage ........................................................8
B. Logo of 8 mortgage lenders....................................................................................................8
TASK 6............................................................................................................................................8
Comparison between both shops' net taking of Eco-Fone...........................................................8
TASK 7 ...........................................................................................................................................9
Questionnaires related to customers............................................................................................9
TASK 8 ...........................................................................................................................................9
Appropriation of Poisson distribution and advise to them...........................................................9
TASK 10 – CONCLUSION..........................................................................................................10
TASK 9 - REFERENCES..............................................................................................................10

INTRODUCTION
Eco-Fone Private limited company is a company which was founded on 18th August 2009
in United Kingdom. It is a private limited company with share capital. Key employee is Mr.
Michael David Bruford who is director and company secretary for the company (ECO-FONE
LIMITED, 2019). The company is working under the consumer electronics industry.
Present report will highlight the brief overview about the UK mobile market. It will
produce the line chart and explain about the forecasting methods. It will analysis the features of
smartphones. It will explain weather company should expand or not by using “Pros and Cons
method”. It will calculate the repayment amount of mortgage loan and represent the logo of 8
mortgage lenders of UK. It will compare the net takings of both shops of the company. It will
calculate the average values for the company's customers’ questionnaire. It will demonstrate the
Poisson distribution for the company.
TASK 1
Background of the mobile market in the UK
Background
Inception of smartphones has not yet completed its decade, it becomes more important
part of people's lives and it’s not stopping here. Its popularity is increasing with passing years.
Mobile market is considered to be global market where the level of competition is high. In year
2017, the smartphone penetration rate was 85% which is considered to be increased by 90% in
year 2020. By this rate, it can be known that people in UK are using smartphones a lot which
lead to boom in UK mobile market (Deloitte, 2017).
Following table show the age group along with % of population and their usage style -
Age Groups (% of UK Population) Usage Styles
18 year (34%) Use smartphones within 5 minutes of waking
up.
18 year (55%) Use their mobiles within 15 minutes of waking
up.
18 year (78%) Use their smartphones one hour prior of sleep
16 to 24 years (17%) Use their mobiles at least 100 times in a day.
16 to 19 years (12%) Use their smartphones at least 200 or more
than 200 times in a day.
16 to 75 years (34%) Use their mobiles always with another

activities such as eating, watching, talking or
roaming etc.
16 to 75 years (11%) Use their smartphones during crossing the
road.
16 to 75 years (53%) Use their smartphones during walking on road.
From the above table, it can be easily interpreted that there are a lot of users and buyers
of mobile phones which lead to increase in selling of so much mobile phones in market (Deloitte,
2017).
Bar chart and their interpretation
Mobile phones are for the purpose of making users' lives comfortable. Thus, there are
various activities which is done by the aid of smartphones. These activities are such as -
Activities % in Year 2016 % in year 2017
Emails 41% 37%
Standards Calls 33% 32%
Documents 17% 0%
Voice Calls 6% 4%
Emails Standards Calls Documents Voice Calls
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
% in Year 2016
% in year 2017

TASK 2
Figures on Adults Smartphones Usage during 2012-2017
Following table is for smartphones penetration rates for the Adults during 2012 to 2017 -
Year Smartphones Penetration Rates
2012 52%
2013 62%
2014 70%
2015 6%
2016 81%
2017 85%
For the above linear chart, Linear forecast method is not suitable. Linear forecast refers to
the statistical method which is use for the analysing and forecasting the relationship between
dependent variable and independent variable(s) (Mariappan, 2019). The reason behind the non-
suitability of linear forecast method are as follows -
It only looks at the linear (straight) relationship between variables that means it is always
presumed that there is a straight relationship between them which is wrong in case of fluctuating
relationships between variables (dependent and independent).
2012 2013 2014 2015 2016 2017
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
Smartphones Penetration
Rates

For the linear forecasting method, there must be independent data but in above chart, the
data is not independent, they are dependent with each other. Thus, this lead to non-suitability of
linear forecasting method (Tourangeau and et.al., 2018).
For the above linear chart, the suitable prediction theory is Time series model. Time
series prediction model refers to the series of data which is in the form of time order. It is made
for the sequence which is related to the time points. For the time series, the most suitable
statistical chart is Line Chart. It is generally used for the prediction of future values which is
basically based upon the current observed value. Moreover, it can be used for the various kind of
data which are as follows – Discrete symbolic data, Discrete numeric data, continuous data or
real valued data.
TASK 3
Analysing of the popularity of smartphones between older customers
There are various features which are available in the modern smartphones which lead to
increase in sales of smartphones between older customers whose age were between 55 to 75
years in the year 2016-17 (Smartphone sales boom with over-55s, 2017). These features are as
follows -
Payment through Mobiles
Due to fear of keeping a lot of cash in pocket, customers are using smartphones. These
smartphones have features to pay all the bills, recharges, tickets and salaries through online
systems available in the market. They just have to download all the systems in their mobiles and
use it anytime or anywhere (Lugtig and Toepoel 2016).
Booking Vehicles
There are various applications which can be install in mobile and through these
applications, users or customers can order their cab or auto. This will help them to enjoy the
driving and they are able to reach their destination without any problems. Also, these mobiles
help them to scan their cards on mobile in order to use metros for the purpose of travelling. Thus,
through the smartphones, they are able to easily travel without facing any kind of problems.
A lot of small but attractive features
There are various attractive features which make smartphones more attractive and useful.
Due to big screens as compared to old phones' screen. These lead them to easily use their phones
without affecting their eyes. Also, these modern smartphones have loud speakers and voice

features through which older customers are able to hear clearly. Also, smartphones are easily to
hold for long time as their structure and metal body is suitable for all kinds of customers. Also,
another feature, smartphones has given that we can use it as a computer anytime and anywhere.
There is another feature that make smartphones more popular and that feature is “It is most user
friendly device as compare to another device”, which lead to easily understand the way of use
the smartphones (Haga and et.al., 2015).
TASK 4
Recommendation on the enlargement of the Eco-Fone to Kingston
Should we expand our business to Kingston?
Pros Mark/
10
Cons Mark/10
Increase in Market Size 9 Increase in Costs 8
Gain in Customer Base 8 Increase in operations' load 7
Enhancement of Goodwill 7 Increase in work pressure 7
Generation of Revenue 8 Cultural Differences 6
Profitability 8 Cash Shortage 7
Total Pros 40 Total Cons 35
Average Pros 8 Average Cons 7
On the basis of above ‘pros and cons method’, company should expand its business to
Kingston (Rhodes, 2015).
Recommendation
It has been recommended that Eco-Fone Company should expand its business to
Kingston. If company do expand its business, company may get following advantages which are
as follows – Increase in their market share which will help company to grow more in UK market.
Another advantage is Customer base will become strong which is benefit for the company as it
will lead to increase in loyal customers for the company. If company is gaining its customers
base that means company is able to satisfied its customers by providing good quality products
and services which will help company to enhance its brand image which will related to the
goodwill of the company. Customers are using company's products and services, this will lead
company to increase its revenue and profitability which will be the biggest advantage for the
company, in case company is successfully expand its business and are able to successfully attract
their customers.

TASK 5
A. Computation of Monthly costs of repayment mortgage
Asking price 400000
Negotiable price 350000
15 years
Repayment mortgage 350000
Rate of mortgage 7%
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
Company has requested to take loan from mortgage for £400000 but company got
£350000 for 15 years at the rate of 7%. Now company has to repay £350000 at the rate of 15%
on the monthly basis for the 15 years. From the above calculation, it has been interpreted that the
repayment amount for one year is £38419.32/12 and on the basis of monthly, repayment amount
for the company is £3201.61 (Rennhoff and Routon, 2016).
B. Logo of 8 mortgage lenders
TASK 6
Comparison between both shops' net taking of Eco-Fone
Given
Particulars Figure
Sample 40
First shop (Mean) Average 100
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
Conclusion
The above table is assessing Z score sorting with stated measure of alpha, where p value
is smaller than 0.05 then null hypothesis is rejected and vice versa. In table 1 and 2 both value is
greater than 0.05 so null hypothesis is true (Kim and et.al., 2015). Henceforward, it could be
detailed that there is no important deviation in net taking of both shops.
TASK 7
Questionnaires related to customers
Value Ques 1 Ques 2 Ques 3 Ques 4 Ques 5 Ques 6
Mean 3.4 3.6 2.4 3.1 2.9 2.9
Median 3 3.5 2 3 2.5 2.5
Mode 3 5 2 2 2 2
SD 1.577 1.64 1.07 1.37 1.52 1.52
Range 5 5 3 4 4 4
Minimu
m
1 1 1 1 1 1
Maximu
m
5 5 3 4 4 4

TASK 8
Appropriation of Poisson distribution and advise to them
Poisson random variable 2
Mean rate of success 15
Poisson probability P(X=2) 0.000
Cumulative probability P(X<2) 0.000
Cumulative probability P(X>2) 1
Cumulative probability P(X>=2) 1
According to case, it can be assumed that an event for error return can be occur three time
in a month which will eventually lead to appropriate Poisson Distribution. As it is chosen in the
case when an event occurred so many times in a particular period. Here the occurrence of
returning is constant and doesn't change in any manner (Tourangeau and et.al., 2018). These all
make this distribution appropriate for the given case.
Advise
It is suggested to the company that company should focus on their minimum error
returning probability. Also, they should maintain their current standards for the future so that
occurrence of errors can be reduced and company give good quality products to their customers.
TASK 10 – CONCLUSION
From the above study, it has been summarized that Due to evaluation in Mobile industry,
consumers are using smartphones which lead mobile industry of UK to be boom. Smartphones
are one of the most important device which is being used by every generations and age groups of
the people. Expansion of business should be dependent upon various factors which is needed to
be taken care of by the company for their business' betterment. Chosen of types of graphs should
be bases upon the data collected by the various sources.
TASK 9 - REFERENCES
Books and Journals
Tourangeau, R., and et.al., 2018. Web surveys by smartphones and tablets: Effects on data
quality. Social Science Computer Review. 36(5). pp.542-556.
Lugtig, P. and Toepoel, V., 2016. The use of PCs, smartphones, and tablets in a probability-
based panel survey: Effects on survey measurement error. Social Science Computer
Review. 34(1). pp.78-94.
Haga, S., and et.al., 2015. Effects of using a smart phone on pedestrians’ attention and
walking. Procedia Manufacturing. 3. pp.2574-2580.

Rennhoff, A.D. and Routon, P.W., 2016. Can you hear me now? The rise of smartphones and
their welfare effects. Telecommunications Policy. 40(1). pp.39-51.
Kim, M.K., and et.al., 2015. The effect of perceived risks and switching barriers on the intention
to use smartphones among non-adopters in Korea. Information Development. 31(3).
pp.258-269.
Mariappan, P., 2019. Statistics for Business.
Rhodes, C., 2015. Business statistics. Briefing paper. 6152.
Online
Deloitte. 2017. [ONLINE]. Available through:
<https://www.deloitte.co.uk/mobileuk2017/assets/img/download/global-mobile-consumer-
survey-2017_uk-cut.pdf>
Smartphone sales boom with over-55s. 2017. [ONLINE]. Available through:
<https://www.bbc.co.uk/news/technology-41319684>
ECO-FONE LIMITED. 2019. [ONLINE]. Available through:
<https://companycheck.co.uk/company/06993464/ECO-FONE-LIMITED/companies-
house-data>