Eco-Fone Smart Phones: Business Expansion, Market Analysis Report

This report provides a comprehensive analysis of Eco-Fone, a smartphone company operating in the UK. It begins with an overview of the UK mobile phone market, highlighting the increasing smartphone usage and its impact on sales. The report then forecasts the growth of smartphone usage among adults, analyzes the potential market for older consumers, and presents a "Pros and Cons" analysis for expanding Eco-Fone's business to Kingston. It also includes financial considerations such as the cost of a new building and potential mortgage lenders. The report further examines customer satisfaction, quality procedures, and provides a conclusion with references and appendices. Overall, the report offers valuable insights into Eco-Fone's business strategy, market analysis, and expansion plans within the UK smartphone market.

Eco-Fone

INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Overview of mobile phone market in UK..............................................................................1
TASK 2............................................................................................................................................2
Forecasting the UK adult Smartphone use.............................................................................2
TASK 3............................................................................................................................................2
1.3 Smart Phones- A potential market for older consumers...................................................2
TASK 4............................................................................................................................................2
1.4 A “Pros and Cons method” table for expanding to Kingston...........................................2
TASK 5............................................................................................................................................4
1.5 Cost of a new building and well-known commercial mortgage lenders in the UK.........4
TASK 6............................................................................................................................................7
1.6 Testing the Possible Difference in Net Taking in the Two Shops...................................7
TASK 7............................................................................................................................................7
1.7 Customer Satisfaction.......................................................................................................7
TASK 8............................................................................................................................................9
1.8 Quality procedures............................................................................................................9
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................11
APPENDICES...............................................................................................................................14
CONCLUSION..............................................................................................................................29

INTRODUCTION
There is a rapid increase in the demand of smart phone which keeps on growing day by day
in a magnificent basis (Smartphone sales boom with over-55s, 2019). This is a result of
technological innovations and advancements which makes individual found of smart phones.
Present case study has been conducted on, the company Eco-Fone Smart phones. Entity sells
their smart phones and accessories through their two shops in Putney and Richmond. Currently
company is not in the sector of selling laptops and tablets. Recently Eco-Fone is looking forward
to expand its business operations in Kingston. In this report, formative discussions has been
made on, product related, consumer related and finance related information in context with Eco-
Fone. In addition with this current situation of phone market in United Kingdom is also covered
in this report.
TASK 1
Overview of mobile phone market in UK
As per the survey conducted by Deloitte, it has been evaluated that usage of smart phones is
increasing with its fast phase. It leads towards magnificent rise in sales volumes by 1.5 billion on
an annual basis. Currently there is 58% of adult population in the sector of utilization of smart
phone within UK and as per accordingly to a research there is a high expectation of this index
will grow up to 90% by the year 2020. This drastic rise in the number of individual attracting
towards smart phone is because of as technology is acting as a most important part in every
individual life smart phone aid people to conduct their regular activities with more easiness.
Smart phone provide many benefits with the help of which individuals can do their work in great
effective manner. Currently there are more than 33.5 million population is working and out of
that 32 million individuals performing their job with the help of smart phones. With the
utilization of smart phone in day to day activities individuals can effectively do their work in an
instant and effectual way some of these activities include, calendar management, Email, voice
calls, messaging and more. In addition to this, old age group individuals are also taking
advantage of smart phone as a medium of their entertainment.
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TASK 2
Forecasting the UK adult Smartphone use
As per according to the conducted survey, it has been seen that, approximate number of 17
% population in the age of 16 to 24 is using and keeps on checking their smart phone 100 times
in a day. Along with this, same age of people claims that they check their smart phones 200
times in a day. In addition to this, conducted survey throws a light on a fact that 34 % of
population within the age group of 16 to 75 are heavily addicted to their phone and continuously
use it even without consuming their meal and spending their time with families and friends. This
kind of same tendency is found in 49% of total population in the age group of 16 to 24. While
within the age group of 16 to 75 11 % of individual is spending their time on smart phone even
while they cross a road and 53 % do the same thing even while they walk on the public road
(Global mobile consumer survey. 2017). Thus, it has been analysed that, age group of 16 to 75 is
using smart phone more as compared to other age group of individual.
TASK 3
1.3 Smart Phones- A potential market for older consumers
According to the view of Leo kelion, 2017 is can be evaluated that, sale of smart phones is
increasing day by day within the group of older consumers in the territory of UK as per
according to the case study. There is 71 % of old consumer within the age group of 55 to 75
years is having smart phone along accordingly to research, it has been seen that individuals
within the same age group is adopting technology more faster as per compared to other in the last
five years. Furthermore, as per research whose sample size was of 1,163 that has been conducted
by Deloitte it has been analysed while making a comparison in between youngsters individuals
of in the age group of 55 to 75 is more addicted to smart phones. In addition with this, people
who are having their wealth average of more than normal tends to buy premium handsets. Along
with this, as per the research information, it has been seen that individuals might forced to make
a purchase.
TASK 4
1.4 A “Pros and Cons method” table for expanding to Kingston
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Should we expand
business
Yes, Market place in Kingston proves to be effective and
beneficiary for Eco –Phone as to enlarge their business
services.
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Pros Score/10 Cons Score/10
Eco-Fone by enlarging
their area of services
and operations in the
marketplace of
Kingston lead towards
gaining large base of
customers for their
company (Abi Ghanem
and Mander, 2014.).
8 In order to expand their
area of servicing in the
market place of
Kingston Eco-Fone is
required to arrange
efficient amount of
capital in order to
effectively operate their
functions.
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A company engaging in
the offering smart phone
in the attractive market
of Kingston can
effectively maximise
company visibility and
brand value at a market
place.
6 Through the process of
enlarging there business
company might face
some legal regulations
and laws framed by the
local government.
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Eco-Fone can
effectively gain
numerous set of
opportunities by
offering their formative
services in the market
place of Kingston.
Along with this, they
can acquire proper
understanding of
different types of new
marker culture. In
addition to this,
company can hire fresh
and innovative talents
form the local residence
in the respective
country.
8 Business expansion in
Kingston brings
company to face many
challenges related to
language barriers that
can create many
obstacles in the business
operations of company.
6
A respective company
can effectively able to
maximise their
consumer base and
ration of profitability
while performing their
business at Kingston.
7 Eco-Fone by expanding
their business services in
the market place of
Kingston also results in
increasing their base of
competitors that will
affect its operations in
both direct and indirect
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4

way.
Total Pros 29/40 Total Cons 27/40
Average Pros 0.72 Average Cons 0.67
TASK 5
1.5 Cost of a new building and well-known commercial mortgage lenders in the UK
Loan Amount £350000
Number of EMIs 180
Annual Interest Rate 0.07
Monthly Interest Rate 0.00583
Monthly EMI Payment £3145.90
Total Loan Amount Payable £566261.81
Total Interest Payable £216261.81
Mortgage loan is related to the money that is paid in advance and debt instrument that is
provided by a bank against possessions of the loan taker (Thomas and Bond, 2014). This loan is
taken in order to make a purchase of assets such as, home, land and more. Moreover, in this
lender is having a right to forfeit the possessions and property of a loan taker if that individual is
unable to pay the amount. There are different types of factor consists in mortgage loan that
includes, insurance, interest tax and principle. Mentioned below there are some major
organisations engage in the offering of mortgage loan in United Kingdom:
1. THINK Business Loans Commercial Mortgages
5

2. B2B Finance.Com Commercial Mortgages
2. HSBC-UK Mortgage Lenders
3. Royal bank of Scotland Commercial Mortgages
6

4. Together Commercial Mortgages
5. Bank of Ireland
6. NatWest Commercial Mortgages
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7. Alliance & Leicester plc.
TASK 6
1.6 Testing the Possible Difference in Net Taking in the Two Shops
Eco-Fone is engaging in the business of offering smart phones and accessories at discounted
rates in its two retailing shops . Through their first shop company have generated 100 Euro profit
while from the second one 90 Euro profitability has been generated. But in this case, there is a
sample size of 40 has taken and in these both of the shops standard deviation was 20Euro and $0
Euro simultaneously. Therefore, it can be seen from the overall analysis that first shop owner has
acquired more profit as compare to second shop owner. As with the rise in sample size and mean
there is an expectation of decrease in variability (Chang and Liu, 2016). Thus, both of the shops
did not acquire exact same net profitability. Therefore, it is important for second shop to re-
design their strategies and policies and offer their products at discounted rates.
TASK 7
1.7 Customer Satisfaction
1. When did last you buy a product and services form us?
 Within the time period of last month
 In between 1 Month to 3 month (.)
 In between 3 month to 6 month
 In between 6 month to 1 year
 Never
2. What was the time duration within which you utilized our product and services?
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 Less than 6 month
 In between 6 month to 1 year
 In between 1 and 3 year
 More than the time period of 5 year
 Never
3. Kindly, rate our offered services( Tick one: Excellent=4, Good=3, Fair=2, Poor=1)
Basis 4 3 2 1
Consumer service/ Support (.)
Pricing Range (.)
Worth of product and services (.)
Sales Staff (.)
4. Rate our overall range of products and services and your level of satisfaction
 Very Satisfied
 Satisfied
 Neutral (.)
 Dissatisfied
5. How likely you would recommend other for our products and services?
 Very Likely
 Likely
 Neutral
 Unlikely
 Very Unlikely
6. How likely you want to keep on doing business operations with us?
 Very likely (.)
 Likely
 Neutral
 Unlikely
 Very Unlikely
7. We would like to have your valuable suggestion related to further improvement in
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