Eco-Fone: UK Smartphone Market Analysis, Expansion, and Costs

This report provides a comprehensive analysis of the UK smartphone market, focusing on the potential for Eco-Fone. It begins with an overview of the mobile phone market in the UK, forecasting future smartphone use and identifying opportunities within the older customer demographic. The report then examines the feasibility of expanding the business to Kingston, using a pros and cons table to evaluate the market. It delves into the costs associated with a new building and analyzes potential net takings in different shops. Customer satisfaction and quality procedures are also assessed, leading to key conclusions and findings regarding Eco-Fone's strategic direction. The report utilizes data from Deloitte, market analysis, and financial projections to support its conclusions. The report also includes an analysis of the financial implications of expanding and a detailed look at customer satisfaction metrics, providing a complete assessment of the market opportunity and the potential challenges that Eco-Fone faces.

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REPORT FOR ECO-FONE
Date: April ??, 2019

Table of Contents
Introduction................................................................................................................................ 3
1. Analysis of Issues for Eco-Fone Smartphones.........................................................................4
1.1 An Overview of the Mobile phone market in the UK........................................................4
1.2 Forecasting the UK Adult Smartphone use ......................................................................5
1.3 Smartphones - A potential market for older customers...................................................6
1.4 Feasibility of Expanding business to Kingston using Pros and Cons table.........................7
1.5 Costs of a New Building....................................................................................................7
1.6 Testing the possibilities in net taking in different shops.................................................9
1.7 Customer Satisfaction.....................................................................................................11
1.8 Quality procedures.........................................................................................................13
1.9 Conclusions & Important Findings..................................................................................13
REFERENCES ............................................................................................................................. 14

Introduction
According to given information in Deloitte report, the users of mobile phone and its
accessories in United Kingdom is upto 80% in 2018(Deloitte, 2017). it is assumptive that in
upcoming few years till 2022 the market of smartphone leads to highest and across 90%
to 95% .
On the other hand, if workforce of UK is acknowledge, then it can well mentioned that UK
is dealing ample number of employees as 33.5 million (Human Resources) and from this,
approximately 32 million employees are performing their job roles effectively and
efficiently on daily basis (Smartphone sales boom, 2019). It is analysed that in year 2017,
mostly users of smart phones is not using the phones for official business use where as
they using unofficial application and websites such as Facebook, Instagram, What's App
tools for making social connection. Hence, it is easily said that in future there is highest
possible benefits for Eco-Fone.

1. Analysis of Issues for Eco-Fone Smartphones
1.1 An Overview of the Mobile phone market in the UK
The UK market of smart mobile phone is frequently increasing day by day as the
ownership of smartphones is enchaining. Although in year 2018, it is analysed that 87% user
purchased and owned their smart phones as it leads to increased by2%.(Slade and et. al.,
2015).
On the other hand , if it is talk about the users of tablets and laptops also increased by 4%.
The 64% user said that, using of the smart phone distract them while working, as out of this
12% of respondents switches to high effective network as soon as its available in market for
use. As according to this the Eco-Fone will face both benefits as well as the challenges from
the competitive market.
Email
Making standard calls
Calendar Management
Viewing Documents
0.00% 10.00% 20.00% 30.00% 40.00% 50.00%
41.00%
33.00%
3.00%
17.00%
37.00%
32.00%
0.00%
0.00%
2017
2016

The rational motive for not applicable as well as execution of linear forecast in the situation,
as this model only focused on showing and creating the effective relationships between both
the dependent and independent variables, which are linear in nature. The other hand, other
disadvantage of this model is, it acknowledge and assumes that between them their is
straight-line relationship present between them, as this is not correct each and every time.
BY considering the facts presented in the report of Deloitte, the concept of probability
the researcher conduct the report. Analysis and present that the usages of smartphone is
increasing day by day in UK market within the year of 2018-2019. As this could be understood
with the help of good example, as the 10% adults of United Kingdom has adopt e-Reader
which is one of a crucial and effective electronic tool used the individual user in the regular
basis. As It can aforesaid that the, approximately 31% of user lies in the category of 18-75 has
owned e- reader. As it is assumed that out of 100 the 31 respondent are using the electronic
device with different reasons.
1.2 Forecasting the UK Adult Smartphone use
2012 2013 2014 2015 2016 2017 2018 2019
0
10
20
30
40
50
60
70
80
90
100
73 76 75 79 76 78 79 80
52
62 70 76 81 85 86 88
16
36
50
60 63 68 67 68
Smartphone, laptop and tablet penetration among UK
adults, 2012-19
Laptop
Smart Phone
Tablet

By analysing the above mentioned bar graph, it is easily be analysed and said that in present
time the users and market of smartphones is increasing day by day effectively as compared
to other electronic devices. The above graph has shows that in present time the majority of
users are using smartphones as 91% and it will also increase with time to time and also there
is a possibility of increasing the market and users of laptops as 68% of users has notices that
there is a possibility of increasing the market. If noticed that large tablets is also have the high
level of users with 64% compared to other devices. The usages portable game player is very
rare as only 8% is used and the use of standard mobiles is low 31% only. Although the virtual
headset are utilized by 11 percent only in this week alone ans 16 % in the previous week.
1.3 Smartphones - A potential market for older customers
As per Engage with the new generation of seniors, (2019) in the year of 2017, it has
been observed that one of the older customer (age is between 54-76) which is using the
smart phone with updated application, here it can be seen that smart phone sales are
booming among the older customer in effective way (Frone Panaitescu Chiulan Nicolae,
2018)Specially in United kingdom the smart phone user are mostly can be seen, the age group
is 50-79 and along which that company is making such variety designed brand smart phones

which attract the customer to buy the product. Hence it has also been seen that up to 60% of
respective is using Facebook and hence it has been figure out more then 81% individuals are
adults. As per the Deloitte company it was been assessed that above 50 years of age people
are living in richer group and through which there taste and preferences are more updated
and new technology tools which are been used by them all. There fore the purchasing power
of this group of people is high then adult or young people. Due to new tools and technology
which are been launched by the company and come into the market which attracted the
minds of the older customer in impressive way. Smart phones which are coming into the
market is latest models and features and hence which captured a large number of customers.
Some of the unique features which is driving older customer mind regarding to smart phone
which are been discussed below :-
 Control over financial accounts which helped them to invest in different fund of
companies through one place from their smartphone. Through which they are able to
allocate the things at proper manner. This one of the important benefit that can has
been determined by the older customer, even the age group of 50-79 the customer is
effectively using smart phone which is been comfortable to make financial transaction.
 Next factor is that now a days youth is using high technology gadgets and making
them to do the work in proper time and without wasting energy, so due to changes
around the environment that affect the older generations like grand parents, parents
and many more.
1.4 Feasibility of Expanding business to Kingston using Pros and Cons table
It has been stated that business growth is high in ever countries through which
networking of the different company is strong ( Rimia Lipşa and Râpă 2016). The Eco-Frone is
biggest aim to expand the business in wide countries and which can operate the work into
different areas for generating more profits. So as a in a competitive world Eco-Frone is play
major role for the development of the companies in effective manner. In context to Kingston
it market is in Canada which working hard and attain good position. After doing survey it is
been stated that there many porns and corns that has come front and which is been
described below:

As per above table it can be determined that the Kingston which is offering various
opportunities for the skilled labours and workers from which they can earn good incentive
and increase the standard of living more over it aid to the growth economic conditions.
Through business expand Kingston which is making high growth in the business industry and
earned good profit margins. But the company need to focus on various factors like political,
social, cultural and this will develop risk for the company.
1.5 Costs of a New Building
In the present cases the organisation that is Eco-Frone is wanted to merge with Kingston and
willingly wants to operate the business so the suitable requirements which is need is
appropriate premises. The approach which adopt by the Eco-Frone is equal monthly payment
method which will help the company in effective way to expand its business growth
(Panaitescu, Frone, Chiulan, Casarica Nicolae et. Al 2016)

According to information which is been stated above the premises which is been used
is owed by company is gaining maximum benefits. The cost which is been assumed is £400000
and Eco-Fone which is undertaken loan which is same. The principal loan amount
£ 350,000 considering till 15 years and here the annual interest rate will be 7%. so company
has decided to repay the loan according the same monthly payment amount that time will be
180 months and rate is 0.00583%.
Some of the famous commercial mortgage lenders which are in united kingdom are as :-
(1) Wells Fargo
(2) Prudential Mortgage Capital Co.
(3) Met Life Real Estate Investments
(4) Red Mortgage Capital LLC

(5) Alliant Capital
(6) Centerline Capital Group
1.6 Testing the possibilities in net taking in different shops
For identifying Echo- Fone, net daily is is task have been observed of two retail outlet
in Putney and Richmond. Both are the competitors and deals in mobile phone accessories.
They are the rivals and continuously working to provide better services to their respective
customers.
Particulars Putney Richmond
Mean 100 90
Standard Deviation 20 40
Sample data set 40 40
Total Net Daily
Takings
4000 (= 40*100) 3600 (= 40*90)

The survey for 40 respondent have been taken as consideration for the very first store
and minimum of 100 pounds is charged and Deviation is around of 20 pounds. From the
other side of the table the number of respondent is 90 and sample is size is a taken of 40
people. From the above mentioned table given, net sales of mobile parts can be evaluated.
Mean and standers deviation of of these to competitor may differ from each other even if the
sample has been take the same(Flores, 2016). The shop which is situated in Richmond tends
to have increased variance in its sales due to quality whereas Putney have higher stander of
deviation. Putney have higher actual means as compared to Richmond which means the
market share and profit is higher than Richmond. Due to high deviation of Putney they score
the first position in comparison to Richmond shop. Overall, performance of Putney is higher
and they provide best in class product to their customers.

1.7 Customer Satisfaction