Eco-Fone Business Report: Market Analysis and Expansion Strategy

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Report for Eco-Fone 2019
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REPORT FOR ECO-FONE
Date:
Table of Contents

Report for Eco-Fone 2019
Introduction......................................................................................................................................3
1. Analysis of Issues for Eco-Fone Smartphones............................................................................4
2. References..................................................................................................................................17
3. Appendices................................................................................................................................18

Report for Eco-Fone 2019
Introduction
The smart phones marketplace has been rapidly growing all over the world. There are a large
number of retail smart phone dealers and businesses operating in the UK, amongst which Eco-
Fone is one. This business sells mobile phones accompanied with its related accessories from its
two differing retailing outlets with one of them situated in Putney and the other one situated in
Richmond. Within this report, a detailed analysis will be conducted on the UK market relating to
sale of smart phones and the reasons behind their usage along with considering the option that is
available to Eco-Fone for its business expansion to a new marketplace. Differing methods such
as forecast and pros and cons method would be utilised for the analysis of this expansion.

Report for Eco-Fone 2019
1. Analysis of Issues for Eco-Fone Smartphones
1.1 An Overview of the Mobile phone market in the UK
(a) Within the timeframe of the last few years, specifically from 2012 onwards, it can be easily
found out that considerable improvements have occurred in the mobile and smart phone market
not only in the UK but also all over the world with UK being one of the leading countries in
terms of smart phone usage. The organisation Deloitte is one of the primary researchers of the
growth and development occurring in the UK marketplace and it has come up with the outcome
that the workers and the office goers in the country are largely using smart phones.
According to the findings of this research, one can observe that Deloitte has opined that the total
strength of the nation is 32 million and amongst this entire working population, 16 million,
which means half of the total working population, are to say that smart phones have made their
life easier by solving their work-related troubles (Deloitte.co.uk, 2019).
It can be seen that within 16 million working population, there is 34% of the population claiming
their dependence on smart phones so that they can be dealing with their clients and solve work-
relating issues over video conferencing, whereas 23% of them is seen to be using them for
calendar management (Deloitte.co.uk, 2019). Conversely, 44% and 43% of them claims their
usage for work-relating mailing and messaging respectively (Deloitte.co.uk, 2019). It is also seen
that the research conducted by Mullan and Wajcman (2019) indicates increasing smart phone
usage because of work-related travelling and this is a reconfirmation of the results achieved from
Deloitte’s research.
(b)

Report for Eco-Fone 2019
E-mails Making standard
calls Managing my
time/workload Accessing the
company intranet
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2016
2017
Figure 1: Mixed bar diagram relating to smart phone usage for work relating issues as per
Deloitte
(Source: Learner)

Report for Eco-Fone 2019
1.2 Forecasting the UK Adult Smartphone use
The presentations made in the report that Deloitte presented indicate that in the UK, smart phone
users majorly belong to the adult age group since the working population are seen as the main
smart phone users in the country. In the following section, there is a line graph presented wherein
the usage of smart phones amongst the adults of the country are presented during the span of
2012 to 2017 -
Figure 2: Adult smart phone usage within UK
(Source: Learner)
Considering the above line graph, there is a forecast made on the usage of smart phones amongst
adults within the timeframe of 2018 to 2019 in the figure underneath -

Report for Eco-Fone 2019
Figure 3: Forecasts of usage of smart phones amongst adults in the UK
(Source: Learner)
As stated by Wang et al. (2018), the method of “linear forecast” is seen to be applied for the
imposition of a “line of best fit” to the historical data based upon time series. The suitability of
the method is when the variables being taken into consideration are progressive in nature and
have stability. However, whenever considerations are made for adult smart phone uses, the usage
is inconsistent and changing from time to time, due to which variables are also inconsistent and
keep altering every year. Palavicini et al. (2016) has stated that the moving average is a suited
technique in order to forecast any phenomenon or consumption when the variables are changing
from time to time. Hence, for this forecast, the moving average is a suited technique, which is
seen to be utilised and applied above.

Report for Eco-Fone 2019
1.3 Smartphones - A potential market for older customers
The present situation of business and the increasing use of smart phones for it indicate that there
are people belonging to each age group who use smart phones. However, BBC’s research over
the smart phone marketplace shows findings that elderly people are the major users of smart
phones in the present situation. The research of BBC News (2019) shows that in average, there is
a presence of 70% individuals belonging to the age of 55 to 75 in the sample that it considered
for the research comprising of 1163 individuals and they are extremely dependent on smart
phones. They are of the opinion that they have started utilising smart phones according to the
recommendations that have been provided from their family members and these devices have led
to the simplification of their lives, reducing the complexities present in them previously. The
below are the five differing reasons that the elderly respondents have mentioned on how they are
becoming highly dependent on smart phones with each day -
 Elderly individuals can be scheduling as well as booking their taxi or cab rides without
the requirement of looking, waiting or standing in queue for cabs.
 Phone bills, TV, parking tickets, and such other payments can be done with their smart
phones.
 These individuals have lowering eyesight and smart phones have made it easier for them
to watch the news, movies, videos or any other shows.
 Staying connected with their friends and relatives have become easier with smart phones
along with an enhancement of their daily lives.
 Accessing smart phones is also easier due to the varying features in them such as face
detection or fingerprint sensation.

Report for Eco-Fone 2019
1.4 Feasibility of Expanding business to Kingston using Pros and Cons
table
Eco-Fone and the present conditions of the business enterprise provides an insight that it is a well
performing business as per both its outlets situated in the Borough of Richmond and Wandworth.
However, there are no other places in which the operations of Eco-Fone can be seen and
Kingston is an attractive marketplace for the business’s expansion, as anecdotal evidence is
found for smart phone business to be thriving in the market. A pros and cons table has been
attached underneath from which the feasibility of the expansion of the business can be observed -
Table 1: Application of “pros and cons method” for Eco-Fone’s expansion
(Source: Learner)

Report for Eco-Fone 2019
With the consideration of the above-attached table, one can be noticing that there is considerable
number of pros or benefits if the market expansion to Kingston takes place, as the market is a
thriving one. At the same time, several cons are also existent within the business relating to its
expansion. As a result, there are recommendations provided for Eco-Fone to expand the
operations and activities of the business to Kingston through formulation of a number of
effectual strategies that can be nullifying and removing the above-identified cons, which acts as
potential risks for it in this new marketplace.

Report for Eco-Fone 2019
1.5 Costs of a New Building
(a) For the repayment of mortgage for a term of 15 years, which is being considered in Eco-Fone
has been computed and shown in the discussion beneath -
Based upon the above-indicated computation, it is easily derived that an amount of £3145.9 has
to be paid as the monthly repayments for the mortgage that the business requires taking. As a
result, this monthly repayment would be leading to a total payment of £387740.00 at the end of
the 15-year mortgage term inclusive of the net interest to be paid along with the principal amount
of £350000 taken as loan.
(b) One can be explaining a mortgage lender as an individual or any institution from which funds
can be borrowed for the purchasing of buildings and homes (Aalbers, 2016). There is a
prevalence of varying sorts and number of mortgage lenders within the marketplace of UK
providing assistance for the growth of businesses and buildings (Benetton, 2018).
Within the following graphic, there is a list of eight most significant lender of commercial
mortgage loans in order to use them for commercial reasons -

Report for Eco-Fone 2019
Figure 4: Top mortgage lenders in UK
(Source: Learner)