Business Expansion Feasibility Report: Eco-Fone's Kingston Venture

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Contents
Task 1...............................................................................................................................................3
An Overview of the Mobile phone market in the UK.................................................................3
Task 2...............................................................................................................................................5
Task 3...............................................................................................................................................7
Smartphones - A potential market for older customers...............................................................7
Task 4...............................................................................................................................................8
Task 5.............................................................................................................................................10
Costs of a New Building............................................................................................................10
A)............................................................................................................................................10
B)............................................................................................................................................10
References......................................................................................................................................11
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Task 1
An Overview of the Mobile phone market in the UK
As per the Deloitte, smartphones are obligating the great market in the United Kingdom. The
smartphone as becoming the daily lives and easy mode of the work with 90% of the smartphone
user is using on a daily basis. The survey was done by the eight editions of Deloitte‘s mobile
consumer survey with a different category of people.
The Deloitte is doing the survey every year and in 2017 as using the smartphone is 85% and it is
increased with the two percent in 2018. Every person is having a smartphone in the United
Kingdom and that is usable in every moment of life (Deloitte, 2017).
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The graph is showing the age group is using smartphones with significant years. In 2012 most of
the user is in the group age of 18-24 and the all age group is using the smartphone and it is
increasing with the year. The smartphone is also using by the child for enjoyment and games. In
2012 it has 75% users in the age group of younger because the organisation of smartphone
making they have upgraded the features with the needs of the customers. In the current market,
the smartphone is having the rapid market because there is having many brands is making the
smartphones and in every weak many companies is launching the smartphone with the different
features ((Deloitte, 2017).
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Task 2
The UK Adult Smartphone use
Linear equation
Year Percentage
laptop Smartphones Tablets
2018 81 87 71
2017 79 85 69
2016 75 82 64
2015 78 77 61
2014 75 71 51
2013 75 61 34
2012 74 53 15
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2018 2017 2016 2015 2014 2013 2012
0
10
20
30
40
50
60
70
80
90
100
laptop
Smartphones
Tablets
As per the linear equation, all the three had started with the different year and on the current
market, they all compete with each other. In 2012 the laptop has the top position in the market
and this is having a current position in the market. The tablet has started the competition with the
laptop and smartphone in 2015 and tablet has also a rapid increment in the market, this is a
unique category. The smartphone has continuously increased in the market and the mobile cost is
very low for that every person is used to buy the handset.
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Task 3
Smartphones - A potential market for older customers
As per the Kelion, the smartphone comes for the rapid change in the market and in the current
scenario, the smartphone is the boom in the market to do work in an easy method. The
smartphone is mainly using in the age group of 55-75 as compared to the younger people of the
United Kingdom that is 71%. In the last five year, the smartphone is having a very important
need for human being. In the United Kingdom, 50% of people are using Facebook and they
check their phone every 15 minutes. All older peoples are like to buy a premium handset with the
effective features to reduce the workload and it is easy to use. The smartphone is having easy
software to use anybody for the work.
Most of the public is used to buy a smartphone for the easy payment transaction and book the
cab facility in every place. The older people are not having that much capacity to do work then
they are using the smartphone for the easy work. The people of UK are a most likable thing in
the smartphone is Facial authentication to unlock the phone and with the help of a smartphone,
they can do the video call to any of the person in the world (Kelion, 2017).
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Task 4
Feasibility of expanding the business to Kingston using Pros and Constable
Pros and Cons
Should we expand our business to Kingston?
Pros Score/10 Cons Score/10
Increased profit 10 More funds 9
Consumer awareness 9 More expenditure on infrastructure 7
Improve brand image 8 Loss of control 6
Increase resources 6 Limited quality 6
Increased customer reach 9 Limited accessibility 7
Increased sales 9 Increased staff 7
New employees 6 Increased pressure 6
Reduce competition 5 Increased capital requirement 6
Total pros 62 Total cons 54
Average pros 7.75 Average cons 6.75
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As per the Pros and Cons the Eco-Fone as to expand the business to the Kingstone because in the
Pros and cons having the difference of one per score. In the Kingstone area, the business will get
the maximum profitability and it increases the brand value.
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Task 5
Costs of a New Building
A): Calculation of monthly cost
Calculation of Monthly cost of a mortgage loan for Eco-Fone
Loan amount 350,000
Loan term 15 year
Payment per year 12 year
Rate of interest 7%
The monthly cost of a mortgage loan for Eco-Fone - £ 3,146
B): Commercial mortgage lenders in the United Kingdom
Interbay commercial: the Interbay is providing the commercial mortgage lender, as per the client
they are providing the sale and remortgaging commercial property with the usable for the
investor or owner (Interbay, 2019).
Lendinvest: the Lendinvest is helping the client to invest in the short term mortgage for earning a
profit, it offers to the individuals or institution in UK mortgage only (Lendinvest, 2019).
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References
 Deloitte. 2017. The smartphones: A blessing or a curse. Deloitte. [Online] Available at
https://www.deloitte.co.uk/mobileuk/assets/img/download/global-mobile-consumer-survey-
2017_uk-cut.pdf [Accessed 25 Mar. 2019]
 Interbay. 2019. Mortgage Products. Interbay. [Online] Available
at:https://www.interbay.co.uk/mortgage-products [Accessed 25 Mar. 2019]
 Kelion, L., 2017. Smartphone sales boom with over-55s. BBC. [Online] Available at:
https://www.bbc.co.uk/news/technology-41319684 [Accessed 25 Mar. 2019]
 Lendinvest. 2019. The marketplace for mortgages. Lendinvest.[Online] Available
at:https://www.lendinvest.com/ [Accessed 25 Mar. 2019]
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