Eco-Fone: A Business Report on Market Expansion into Kingston, UK

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Eco-Fone
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Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
Task 2...............................................................................................................................................5
Task 3...............................................................................................................................................6
Task 4...............................................................................................................................................7
Task 5...............................................................................................................................................8
Task 6...............................................................................................................................................9
Task 7.............................................................................................................................................10
Task 8.............................................................................................................................................11
Task 9.............................................................................................................................................12
Task 10...........................................................................................................................................13
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Introduction
In this report, there is a company named eco-fone which engages in the sales of smartphones.
The company is constantly growing its products and generating high amount of profit. The
company also planning to expand its business to Kingston and for expansion; there is a need for
the wide area, by this business can be done. Also, a detailed talk about z-test and Poisson
distribution is done in the following report. Smartphones are attracting the older age customers in
buying the upgraded handsets and this plays a very huge part in the development and growth of
the business.
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Task 1
In the investigation of Eco-fone smartphone market, it has been found that the population that is
engaged in working in the UK is currently nearly about 33.7 million out of which only 31.99
million people are taken the responsibility of doing the work properly. The workers who are
doing their work properly are using their smartphones for at least one work-related activity of the
business; however, the population should be much higher as compared to now (Deloitte, 2015).
It has also been seen that about 41 percent of workers use Whatsapp for at least once a day as
this application is based on SMS (short messaging service), calls, sharing of media from one
device to another etc. and some other unofficial applications of smartphones namely GPS, snap
applications, messaging applications and mobile browser (Google Chrome, internet explorer etc.)
are helpful in increasing the usage of smartphones. Most of the workers in the UK use their
smartphones for the purpose of getting and sending emails (42 percent), voice calls percent is 37
and calendar management percent is 21. The population of workers is higher in using these
applications as these applications are easier to use as compare to the applications that are quite
tough to use like legacy information and reporting systems and these tough applications are
possibly have quite lesser usage among the workers. There are some workers found who use
smartphones for paying the expenses and some PC applications are now changed into
smartphones which will provide benefit to the workers (Krause, and Rädler, 2016).
The usage of the above four activities in the smartphones has been diminished in the year 2016-
2017 due to taking place of newly updated applications.
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Task 2
Year In %
Tablet
s
Laptop
s
Smartphon
es
2012 16 73 52
2013 36 76 62
2014 50 75 70
2015 60 79 76
2016 63 76 81
2017 68 78 85
1 2 3 4 5 6
1850
1900
1950
2000
2050
2100
2150
2200
2250
2300
In % Smartphones
In % Laptops
In % Tablets
Year
5

Line chart for the year 2016-17 of smartphones:
Year In %
Smartphon
es
2016 81
2017 85
Year Smartphones
In %
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Series2
Series1
The above line chart shows that there is a continuous increase in the products as the year
changes. It has been easily assumed by the eco-fone that in the year 2018-2019 the percentage of
products again increases. Hence, the linear forecast model is not fit here so, the company needs
to focus on some other forecasting model which will show the brief description of the products.
The line of regression can be suitable here because it describes the impact of other product on
substitution product. Here the line chart of only smartphones is also shown, how the impact on
smartphone takes place (Mobasheri, et. al., 2015). The model of the forecast which determines or
shows the statistics properly or clearly can be well placed here and beneficial in understanding
the whole data.
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Task 3
According to the market study in the month of May and June this year, it has been found that the
smartphones selling is booming in the older age customers in the UK. The research shows that
almost 71 percent of people in the age of 57 to 77 years are using the handsets that have useful
and some technological applications. There are various types of features that are included in the
new smartphones which attract the customers for a longer period or sometimes for a lifetime. But
it is also seen that the people of demographic tended have use smartphones not as much of that
the people of younger generation. For example, people said that they check their smartphone
after waking up in the morning within 15 minutes as compared to 57 percent which is the
national average (Belair, 2015). New finest quality smartphones have also some upgraded
features for using like booking a taxi, safely payment feature mode and new smartphones also
have loudspeakers and big screens, so it helps in viewing the people and listening to the music
comfortably without any damage. About 52 percent of people use Facebook application out of
which almost 71 percent of people are found to be above the age of 18 years. New phones have
also the feature of picking up the phone easily by just swiping and not by pressing (Kibona, and
Mgaya, 2015). The suggestion of Deloitte is that people age between 55 to 75 years is able to
purchase the premium quality handsets on the basis of their average wealth, although, this can be
said that they purchase premium handsets for the purpose of handing over the old handset to their
children. Facial recognition feature is one of the best features among the elder people as this help
in unlocking the phone quickly.
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Task 4
Pros Score/10 Cons Score/10
Different varieties of
product
8 Lack of
Understanding
6
Increase in Sales 7 Increase in
Competition
7
Increase in customers 10 Problem in managing 7
Knowledge of another
market
9 Handling the behavior
of customers
8
Expansion of
Business
9 Rising in
infrastructure
expenses
6
Total pros 43 Total cons 34
Average pros 8.6 Average cons 6.8
A ‘pros and cons method’ table for expanding to Kingston.
The pros and cons method table showing that Eco-fone Company should be able to expand its
business to Kingston because it can easily be shown that perquisites of expanding the business to
Kingston are more as compare to disadvantages. The profitability condition of any company is
based on the people participating in the business properly or not. Although, the company may
face some serious problems in expanding but ultimately it will provide benefit to the company
(Yedekar, and Johnson, 2018). There are many hindrances occurring when expansion of business
but the company needs to find a way of handling these hindrances and stay alive in the market.
Management of time and resources must be done by the eco-fone before expanding its business
to Kingston.
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9

Task 5
a)
Details Amount (£)
Loan Amount 350000
Loan Repayment Duration(in
years) 15
Rate of Interest 7%
Monthly Installment ($3,145.90)
The amount of monthly installment which is calculated is ($3,145.90) which will be paid up to
15 years at the rate of 7% per annum simultaneously at the starting of every year. The price that
was demanded by the owner of the building was £400000 but Eco-fone tried to cut down the
price of the building to £350000 and it became successful in this (Taylor, 2018). The rate of
interest is applicable to the outstanding amount of loan. For the purpose of expansion then Eco-
fone required better facilities for the smooth running of the business and perform well in the
competition of the market. By doing all this thing, Eco-fone can be able to purchase the building
and if the company is able to generate an adequate amount of profit then the amount of monthly
installment can be easily paid down.
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b)
 = IMLA
 = KENSINGTON
 = NATWEST
 = NATIONWIDE
 = UNILEVER
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 = MONEY
 = LLOYDS BANKING GROUP
 = PARAGON
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