Eco-Fone Smartphone Market Analysis and Expansion Feasibility Report

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Table of Contents
Introduction......................................................................................................................................3
Analysis of Issues for Eco-Fone Smartphones................................................................................4
An Overview of the Mobile phone market in the UK.....................................................................4
Forecasting the UK Adult Smartphone use.....................................................................................6
Smartphones - A potential market for older customers...................................................................7
Feasibility of expanding the business to Kingston using Pros and Constable.................................8
Costs of a New Building..................................................................................................................9
A)......................................................................................................................................................9
B)......................................................................................................................................................9
Testing the Possible Difference in Net Takings in the Two Shops...............................................11
Quality Procedures.........................................................................................................................13
Conclusions & Important Findings................................................................................................14
References......................................................................................................................................15
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Introduction
In this report, it will discuss on Eco-Fone Company, it establishes in 2014. The Eco-Fone is
selling the smartphone and accessories with the two branches one in Putney and another one
Richmond. From 2014 the business has started with two effective branches and onwards it has to
earn a great profit and increasing continuously with the market tendency. In the market, there is
having good goodwill among all the customers. In the United Kingdom, smartphones are having
a great market with the different features and taste of the customers. The Eco-Fone has
increasing sales continuously, alternative looks to be an important difference in net earnings
from both of the branches.
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Analysis of Issues for Eco-Fone Smartphones
An Overview of the Mobile phone market in the UK
As per the Deloitte, in the United Kingdom, the smartphone has become integral to people every
year. The smartphones are having the multipurpose growing range of the functions and features
of the product. Smartphones can be useful for enhancing personal stories with global news and
communication to navigation. In the future prediction, the smartphones will be more intensively
in the coming years, as per the utility (Deloitte, 2017).
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As per the graph, it shows the smartphone penetration and smartphone shipment. Historically,
smartphones have upgraded with the help of features phone. Since 2012, according to the
Deloitte research, in United Kingdom half of the public is using the smartphones and in 2018 the
ratio has up to 87% of the public is using the smartphones in the age group of 18-75. As further
discussed this ratio has is growing continuously as compared to the laptops and tablets, this is
partly because maturity is in a smartphone. In the smartphone shipments is growing in 2013-15
and after that, this has decreased in the 2016-17. The smartphone is growing in older persons as
compared to young persons. The laptops are also having a great market in the UK and it has to
difference the tablets and smartphones with fewer prices. The smartphones are doing the work
with effectively and in easy methods, it is upgrading with the customer’s needs (Deloitte, 2017).
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Forecasting 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, the smartphone is at the top among laptop and tablet. In 2012 the
laptop is having the 74% users because all the public things for the future and they will be
calculated for the circumstances and then only they will use the product. The tablet has started to
compete with the smartphones and laptops in 2014-18 and it takes the rapid forward in the UK
public or market. After that smartphone is having a great market in the United Kingdom,
smartphones have started to compete in 2010 and this growth is continuous with the market and
on the current position, the smartphones have become first in 2016 because of the upgrading with
the customer needs (Consultancy, 2017).
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Smartphones - A potential market for older customers
According to the Kelion, smartphones is the potential market for older customers. The
smartphones sale as reached to the door to door in the United Kingdom, as per the market the
sale of smartphones as a boom in the market. The smartphones are having the having sale 71% of
the age group of 55-75-year-olds with their own handset. As per the study the older age group as
increasing the using capacity or adoption rate in the last five year. There is also an important
point that is older public is using most smartphones as compared to the younger public. The 20%
of United Kingdom persons are telling that they are using or checking the phone in every 15
minutes of waking associated with an average of 56%.
The 50% of smartphones users have installed the Facebook app compared with 70% all adults.
The data was based on the sample of the 1163 people questioned between May and June in 2017.
The age group of the 55-75 there have the capacity to purchase the premium handsets with the
best features of the smartphones and they are waiting for the new feature handsets. The mostly
55-75 age group is using for the payment via mobile phone for the easy payment system and
mostly they can book the cab with the help of smartphones for the easy way they get the
satisfaction with the smartphone (Kelion, 2017).
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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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The Eco-Fone is thinking for the new branch in the Kingstone for expanding the business and
earning more revenues for the business. As per the pros and cons of the Kingstone in Eco-Fone is
satisfying the Pros with the business needs the most business need is profit this satisfying the 10
out of 10. The total pros are the 62/80 and the cons are 54/80 and there having the difference
with the average of 1 in every aspect. Pros and cons help to analyze the thing with different
situation and make a different and effective decision to solve the problem.
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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
Masthaven: the Masthaven is the bank and commercial mortgage lenders providing to the flat
pack furniture and organisation. This company is working with the intermediaries and with the
client. They provide lending products from the mortgage to the short term lending (Masthaven,
2019).
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Santander: the Santander is to help the people and businesses prosper in a simple and fair way,
to earn the more loyalty of our people, customer, and communities. The organisation is providing
the best services to the customers.
MTF: the MTF is the multilateral trading facility; it is the self-regulated financial trading venue.
MTF is the commercial mortgage provider to the traditional stock with an effective manner for
the long term benefits.
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