Eco-Fone Business Expansion into Kingston: A Market Analysis Report

Desklib provides past papers and solved assignments. This report analyzes Eco-Fone's market and expansion plans.

Eco-Fone
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Table of Contents
Introduction......................................................................................................................................3
1.......................................................................................................................................................4
2.......................................................................................................................................................6
3.......................................................................................................................................................8
4.......................................................................................................................................................9
5.....................................................................................................................................................10
6.....................................................................................................................................................13
7.....................................................................................................................................................14
8.....................................................................................................................................................15
9.....................................................................................................................................................16
10...................................................................................................................................................17
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Introduction
In this report, there is a brief discussion about the products of eco-fone Company which is
dealing with the selling of smartphones. The organization increases its profitability in the
smartphone market every year since it has been established. Smartphones have been part of
people’s everyday life ever since they were first released, easily obtaining a global success. Eco-
fone is planning to expand its business to Kingston and there is a requirement of a broad or wide
area for properly doing the business. Under this, Z-test will be discussed and understand how it
will helpful for the Eco-fone organization and the quality of their products. Also, it will be
discussed how finest or updated smartphones attract the older age customers towards buying and
also replace their out-dated smartphones with the new ones. Poisson distribution also is taken in
this report which basically helps in finding the product's invoice.
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1.
In the research 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. In the last five years, the
smart-phones are among the top one electronic device which is using by the 18-25 age people
with the 91 percent (Mobasheri, et. al., 2015). There are various classified ranges of smartphones
available in the market of the UK with some effective and attractive features. The survey
conducted by Deloitte between May and June 2017, it has been found that the smart-phones are
having the largest number of customers in the UK. As per the ratio, the smart-phones are
increased to two percent in comparison to the last survey and the percentage of laptop and large
tablet has been decreased. About 41 percent of workers use Whatsapp for at least once a day as
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this application is based on SMS (short messaging service), calls, sharing of media from one
device to another, etc. Some unofficial applications of smart-phones namely GPS, snap
applications, messaging applications and mobile browser (Google Chrome, internet explorer,
etc.) are helpful in increasing the usage of smart-phones (Deloitte, 2015).
The usage of the below four activities in the smart-phones has been dropped in the year 2016-
2017 due to the replacement of newly updated applications.
Activities 2016 2017
E-mail 41 37
Making Standard Calls 33 32
Calendar Management 3 0
Viewing Documents 17 0
Activities
E-mail
Making Standard Calls
Calendar Management
Viewing Documents
0
500
1000
1500
2000
2500
Series1
Series2
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2.
Year In %
Tablets Laptops Smart-phones
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 % Smart-phones
In % Laptops
In % Tablets
Year
The above line chart shows that there is a constant increase in the products according to the
increase in the year. Only in 2014 and 2016, there is a decrease in the percentage found in a
laptop which is an exceptional case. Linear forecast model is not working well in this case as it
does not explain the data properly. The line of regression can be suitable here as it describes the
impact of other product on substitution product. The model of the forecast which determines or
shows the statistical data properly or clearly can be well placed here and beneficial in
understanding the entire data. So, it can be forecasted that in the year 2018 and 2019 again these
will be increased on the basis of the past record (Yedekar, and Johnson, 2018).
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Year In %
Smart-phones
2018 87
2019 88
Year Smart-phones
In %
0%
20%
40%
60%
80%
100%
Series2
Series1
Line chart of smart-phones for the year 2018-2019 has been shown here for providing the
information about increasing in the smart-phone product. It can be understood that there is a
huge demand for smartphones in the coming years and also over the past years as well.
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3.
According to the report of the market, it has been analyzed that smartphones sales are increasing
in the UK with older customers. The market has thought to achieve maximum customer and they
reach success (Belair, 2015). There are various types of features that are added in the new smart-
phones which attract the customers for a longer period or sometimes for a lifetime. Also, it has
been found in the United Kingdom that the maximum users of smart-phones are in the age group
of 55-75 as compared to the younger people and the percentage is 71 percent. For instance, about
21% of people said that they regularly check their cell phone every 15 minutes as compare to the
national average of 57%. New finest quality smart-phones have also some upgraded features for
using like booking a taxi, safely payment feature mode and new smart-phones also have
loudspeakers and big screens, so it helps in viewing the people and listening to the music
comfortably without any damage. New phones have also the feature of picking up the phone
easily by just swiping and not by pressing. The recommendation 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 (Kibona, and Mgaya, 2015). Face authentication
is one of the best features that unlock the phone easily; this feature helps in attracting the public.
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4.
Pros Score/10 Cons Score/10
Different varieties of
product
8.5 Lack of
Understanding
7
Increase in Sales 9 Increase in
Competition
6.5
Increase in
customers
10 Problem in managing 8
Knowledge of
another market
9 Handling the behavior
of customers
7.5
Expansion of
Business
8.5 Rising in
infrastructure
expenses
7
Total pros 45 Total cons 36
Avg. pros 8.6 Avg. cons 6.8
The above table is showing that Eco-fone Company capable of expanding its business to
Kingston because it can easily be shown that perquisites of expanding the business to Kingston
are more in comparison to disadvantages. The company may grow fast as people taking part and
help the company in making a profit. Also, there should be an increase in customers as the
company is expanding its business in Kingston so the customers of that country also participate
or engage in the business (Taylor, 2018). Although the company may face some serious
problems regarding expansion, in the end, it will provide benefit to the company. The
profitability condition of any company is depending on the people participating in the business
properly or not.
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5.
a)
Details Amount (£)
Loan Amount 350000
Loan Repayment Duration(in years) 15
Rate of Interest 7%
Monthly Installment ($3,145.90)
The monthly installment amount that was calculated is ($3,145.90) which will be paid up to 15
years at the rate of 7% per annum simultaneously at the beginning of every year. The price that
was demanded by the owner of the building was £400000 but Eco-fone tried to bargain the price
of the building to £350000 and became successful in it (Mackey, and Gass, 2015). The ROI is
applicable to the amount that was outstanding on loan.
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b)
 = IMLA
 = KENSINGTON
 = NATWEST
 = NATIONWIDE
 = UNILEVER
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 = MONEY
 = LLOYDS BANKING GROUP
 = PARAGON
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