Eco-Fone Strategic Report: Market Analysis, Expansion, Recommendations

This report analyzes various issues faced by Eco-Fone, a smartphone company, by evaluating the UK smartphone market, customer preferences, and financial data. It forecasts smartphone usage among UK adults and examines the increasing adoption by older customers. The report assesses the feasibility of expanding Eco-Fone's business to Kingston, considering both advantages and disadvantages. It also evaluates the company's quality assurance procedures and customer satisfaction based on questionnaire data. Financial aspects, such as the cost of a new building and net takings from retail shops, are compared. The report concludes by providing insights and recommendations for Eco-Fone to improve its market position and make informed business decisions. Desklib provides access to this report and other solved assignments for students.

Running head: REPORT FOR ECO-FONE
Report for Eco-Fone 2019
Name of the Student
Name of the University
Author Note

REPORT FOR ECO-FONE
Table of Contents
1. Introduction............................................................................................................................2
2. Analyzing the issues of Eco-Fone Smartphone.....................................................................2
2.1 Overview of the UK mobile phone market..........................................................................2
2.2 Forecasting the usage of smart phones among the adults of UK.........................................4
2.3 Analyzing the reasons of increasing use of smart phones by older customers:...................6
2.4 Determining the viability of expanding business in Kingston:............................................7
2.5 Determining the cost of expanding business:.....................................................................10
2.6 Comparing the net takings from retail shops of Eco-Fone................................................11
2.7 Evaluating the satisfaction of customers by analyzing questionnaire data:.......................12
2.8 Determining the quality assurance procedures of Eco-Fone..............................................13
3. Conclusion:..........................................................................................................................13
Reference and Bibliography list:..............................................................................................15
Appendix:.................................................................................................................................17

REPORT FOR ECO-FONE
Introduction
The report elucidates the various issues faced by Eco-Fone by analyzing the
Smartphone market and presenting the analysis of customer, product and financial
information. Evaluating the Smartphone market and feasibility of the expansion of business is
done identifying the preference of customers and ongoing trend in the market. In addition to
this, the quality assurance procedures and the satisfaction of customers are evaluated for
measuring the performance of company. The report also addresses the opportunities for Eco-
Fone to expand its business in Kingston by comparing the average values of pros and cons
and determining the feasibility of expansion.
1. Analyzing of issues for Eco-Fone Smartphone
1.1 An Overview of the mobile phone market in UK
The range of prices of smart phones is extended with the fewer phones being sold.
The market of smart phones has clearly rebalanced despite the year on year decline was a
blip. In the near term, the pattern of sales units in UK is low with higher average selling price
in indicating that the trend of past two years would continue. However, the sale of
smartphones in the country is booming with larger section of older population has increasing
inclination towards buying phones. Moreover, it also suggested by the research that over the
past few years, the adoption of smartphone by older group is faster. It has also been
highlighted that the use of smartphones by the demographic members is less than young
people. The likelihood of buying premium handset comes from older age group of 5 to 75
years having higher average wealth (deloitte.co.uk 2019).
One of the factors that are preventing the decline in sales of smartphones comes from
increasing sales to older age group (Appiah et al. 2017). It is perceived that the manufacturers

REPORT FOR ECO-FONE
would rise of price of handset for offsetting the falling volume, as the market tends to reach
its saturation. Some of the most common usage of smartphones amongst the employed
workforce of UK includes sending emails, viewing documents, making standard calls and
calendar management (Pearson and Hussain 2016).
Email Making standard calls Viewing documents Managing my
time/workload
0%
5%
10%
15%
20%
25%
30%
35%
40%
45% 41%
33%
17%
8%
37%
32%
0%
6%
2016
2017
Presentation of mixed chart of top four work related activities:
(Source: created by author)
The above mixed chart presents the comparison of usage of smartphones for different
work related activities for two different years. Smartphones are particularly used by
customers for sending emails with 41% and 37% in year 2016 indicating a decline in present
year of analysis. For making standard calls, the percentage stood at 33% in year 2016 as
against 32% in year 2017. Workforce did not use smartphones for viewing documents in year
2017 while the percentage recorded at 17% in 2016. Workforce used smartphones for
managing workload at a percentage of 8% in year 2016, which declined to 6% in year 2016
(deloitte.co.uk 2019). Therefore, from the analysis of figures, the fact, which is deduced, is
that the overall usage of smartphone has declined in year 2017.

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1.2 Forecasting the usage UK adults Smartphone use:
This section demonstrates the presentation of appropriate line chart based on the data
produced in the Deloitte report. Such presentation is done using different graphs. The line
chart is presented for the usage of smartphone from year 2012-2017 and forecasting the data
for year 2018 and 2019 based on the chart. The chart is prepared based on the data provided
in the table.
Laptop
usage
Smartphone usage Tablet
usage
2012 73% 52% 16%
2013 76% 62% 36%
2014 75% 70% 50%
2015 79% 76% 60%
2016 76% 81% 63%
2017 78% 85% 68%
2012 2013 2014 2015 2016 2017 2018 2019
68%
70%
72%
74%
76%
78%
80%
82%
84%
Forecasting usage of laptop
Laptop usage Forecast(Laptop usage)
Lower Confidence Bound(Laptop usage) Upper Confidence Bound(Laptop usage)
Forecasting the usage of laptop:
(Source: created by author)

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2012 2013 2014 2015 2016 2017 2018 2019
0%
20%
40%
60%
80%
100%
120%
Forecasting Usage of smartphone
Smartphone usage Forecast(Smartphone usage)
Lower Confidence Bound(Smartphone usage) Upper Confidence Bound(Smartphone usage)
Forecasting the usage of smartphones:
(Source: created by author)
2012 2013 2014 2015 2016 2017 2018 2019
0%
20%
40%
60%
80%
100%
120%
Forecasting usage of tablet
Tablet usage Forecast(Tablet usage)
Lower Confidence Bound(Tablet usage) Upper Confidence Bound(Tablet usage)
Forecasting the usage of tablet:
(Source: created by author)
The above chart presenting forecasted value of usage of different products does not
make use of linear forecast model because implementation of such model requires some

REPORT FOR ECO-FONE
metrics against which the value of variable is ascertained. The linear model is used to forecast
the value of one variable based on another variable. In the given case, the requirement is to
forecast the usage of different products and no other variable has been considered. Therefore,
forecast model of excel is used to forecast the usage of products.
1.3 Smart phones – A particular market for older customers:
In the United Kingdom, the sales of smartphones are blooming among the older age
group with 71% of total old age population owning smartphones in year 2018 compared to
29% in year 2012. Summarizing the features of smartphones that have made Smartphone
popular among older customers has been presented in this section of the report.
 Smartphones now are being launched with bigger screens and loudspeakers which
older age group finds it easier to view (bbc.co.uk 2019). This is so because the
eyesight of older people deteriorates and big screen provide them clear view.
 One of the features that are very attractive among old age group is facial recognition,
which is a quite popular mechanism of authenticity. Old age prefer to pick the phone
and look at it instead of fiddling about the pressing button and entering password for
unlocking the phone (bbc.co.uk 2019).
 Smartphone have added features of built in health applications that help older age
group in keeping a track of their blood pressure, heart beat and pulse rate. In addition
to this, greatest convenience is offered to customers due to growing number of
applications of parking meters (Jannetts et al. 2019).

REPORT FOR ECO-FONE
1.4 Feasibility of expanding business to Kingston using Pros and Cons table:
The expansion of business of Eco-Fone in Kingston is determined and analyzed using
the table of pros and cons that outlines different factors. The average of advantage and
disadvantage of expanding business in the country is compared for ascertaining the suitability
of expansion.
Pros Score/10 Cons Score/10
Diversification in the
business base of
Kingston
8 Expansion of
business faces the
challenge of funding
because the
traditional bank does
not provide loans.
The funding issue is
one of the obstacles
to business expansion
in Kingston.
8
Building a diversified
and balanced
economy along with
a competitive retail
environment for
business.
8 The platform
fragmentation is
another drawback of
the economy of
Kingston that creates
hindrance in the
development of
mobile companies.
7
Increasing global 8 Low level of 7

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population in the
country with highly
qualified resident
offering and
opportunities for
exporting and inward
investment.
productivity and
higher level of lower
value jobs.
Significant amount of
investment is being
made into the
research and
development of
mobile industry. This
would provide Eco-
Fone an opportunity
for
7 Shortage of
accommodation of
business due to
reduction in the
business space.
7
Growth of new
product development
and innovation is
supported by the
engagement of digital
catapult centre
(Alhelalat et al.
2017).
7 The skilled and
talented workforce
supporting the
growth and
development is
difficult to retain.
This indicates that
there is a lack of
skilled workforce in
6

REPORT FOR ECO-FONE
Kingston.
Reducing reliance on
one sector brought by
growing international
outlook through
growing industrial
base.
6 The concern for
security is another
challenging area for
the business
expansion and the
companies operating
in the country has to
deal with security
challenges.
7
Supporting business
expansion with the
increasing internal
investment within the
country.
7 Creating a knock on
the impact for
ancillary occupations
and local supply
chain. Other issues
include stalled
developments and
unlocking sites.
7
Total pros 51 Total cons 49
Average pros 5.1 Average cons 4.9
The above table presenting the average value of total advantages and disadvantages of
expanding business in the Kingston. It is observed from the figure that the average value of
total advantages of expansion is more than average value of total disadvantages implying that
expansion would be favorable.

REPORT FOR ECO-FONE
1.5 Costs of a New Building
a) In this section, the computation of monthly cost of repayment mortgage is
demonstrated. Such cost has been computed using the formula in Excel.
The negotiable value of new building to be purchased by Eco-Fone is £ 350000. Time
of mortgage is 15 years with the interest rate of 7% per annum.
Mortgage Amount £3,50,000.00
Mortgage Rate 7%
Period (in years) 15
Nos. of Payments
p.a.
12
Total Nos. of
Payments
180
Monthly
Repayment
£3,145.90
Formula =PMT(B5/B7,B8,-
B4,0,0)
The excel formula for computing the amount that should be paid monthly is equal to
_xlfn.FORMULA TEXT(B10). Using the formula, the total amount on the mortgage that is to
be paid monthly comes to £ 3145.90.
b) The graphic of the logos of known commercial lenders of mortgage operating in
United Kingdom is presented below. The well-known commercial mortgage lenders
operating in UK comprised of several banks such as RBS (Royal bank of Scotland), HSBC,
NatWest, Cynergy bank, Lloyd bank, Barclays bank, Clydesdale bank and Shawbrook bank.

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Presentation of logos on well-known commercial lenders of UK:
(Source: created by author)
1.6 Testing the Possible Difference in Net Takings in the Two Shops
The net takings from the two retain shops of Eco-Fone is compared by computing the
total net takings which is obtained by multiplying mean value of net takings with total sample
of net takings from each of the shop. In addition to this, the value of standard deviation of net
takings from both the shops is compared for determining the variability. The sample of net
daily takings from both the shop is equivalent to 40.
For retail shop selling accessories,
Mean value of net takings= £ 100
Standard deviation= £ 20

REPORT FOR ECO-FONE
Total net daily takings= £ 4000
For retail shop selling mobile phones
Mean value of net takings= £ 90
Standard deviation= £ 40
Total net daily takings= £ 3600
From the data above, it is observed that the total net daily takings from shop one is
more than total net daily takings from shop two. In addition to this, it is also observed that the
standard deviation of net daily takings from shop two is more than shop two. This higher
value of standard implies that the variability in the net daily takings from shop two is greater
than shop one.
1.7 Customer Satisfaction
The overall satisfaction of customers of Eco-Fone is assessed by evaluating the data
gathered through questionnaires (Hill and Brierley 2017). Data has been collected by asking
the customers to provide answers of the questions. The first question seeks customers about
the last purchase made from the company. It was found that customers purchase the products
between three and six months. Second question is about the time duration for which the
customer uses the products and services of the company. With regard to this question, it was
found that the maximum time for which the customer uses the services and products is
between one and three years. Question three concerns with rating the company on different
attributes. The customer support and services of Eco-Fone is rated as fair. Customers have
rated the quality of services and products, sales staff and price of products good.
Furthermore, customers are neutral when it comes to continue doing business with the Eco-
Fone and with the overall satisfaction. Lastly, from the analysis of data, it has been

REPORT FOR ECO-FONE
ascertained that customers are unlikely to recommend the products and services of Eco-Fone
to others (Stott et al. 2016). Therefore, from the data analysis, it is inferred that the overall
satisfaction of customers with the company is low. Hence, there is a need to make
improvement in the customer services and quality of products and services.
1.8 Quality Procedures
The implementation of Poisson distribution is done where for a given sample space,
the average number of success is known. It helps in determining the probability of exact
number of success that can occur during a unit time. This distribution helps in modeling the
occurrence of defect rate per unit from the large data set. The usage of Poisson distribution os
considered appropriate when the sample to be studied is large enough where the probability
of occurrence of defect is rare (Madadi et al. 2018). In the given case, the size of sample to
be studied is large that is comprises of 10000 invoices with an average of two errors per
month. Moreover, the probability of returning of three invoices is less than 15% implying
that the chance of occurrence of errors is low. Hence, it is suitable to use the Poisson
distribution in the given scenario. Since, the chances of occurrence of error within the given
sample is considerably low, it can be deduced that the company is meeting on the quality
standards.
1.9 Conclusion and important findings
The analysis of the facts concerning the products and services of Eco-Fone gives an
insight into the overall performance of company. With the current trend of smartphones, the
company is making sales that help in generating steady profits. This increased profit level has
lured the company to expand its business in the Kingston. However, some issues are faced
with the quality and pricing of products that anticipates decline in the total volume of sales.
In light of this, it s recommended to improve the quality of the product by incorporating some

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features and adopting the appropriate pricing policy so that the customers are attractive
towards buying the products.

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Reference and Bibliography list:
Alhelalat, J.A., Ma’moun, A.H. and Twaissi, N.M., 2017. The impact of personal and
functional aspects of restaurant employee service behaviour on customer
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Appiah, D., Ozuem, W. and Howell, K.E., 2017. Brand Switching in the Smartphone
Industry: A Preliminary Study. In Global Business and Technology Association Conference,
Vienna, Austria.
BBC News. (2019). Smartphone sales boom with over-55s. [online] Available at:
https://www.bbc.co.uk/news/technology-41319684 [Accessed 20 Mar. 2019].
Cityofkingston.ca. (2019). [online] Available at:
https://www.cityofkingston.ca/documents/10180/15060/Business+Case+for+Expansion/
69a80ba1-9fd8-46cc-9c4f-1c3225a15156 [Accessed 21 Mar. 2019].
Deloitte.co.uk. (2019). | Deloitte UK. [online] Available at:
https://www.deloitte.co.uk/mobileuk/assets/img/download/global-mobile-consumer-survey-
2017_uk-cut.pdf [Accessed 20 Mar. 2019].
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negative effects. International Journal of Scientific Engineering and Applied Science
(IJSEAS), 2(3), pp.473-478.
Hill, N. and Brierley, J., 2017. How to measure customer satisfaction. Routledge.
Jannetts, S., Schaeffler, F., Beck, J. and Cowen, S., 2019. Assessing voice health using
smartphones: bias and random error of acoustic voice parameters captured by different
smartphone types. International journal of language & communication disorders.

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Klementova, J., Zavadsky, J. and Zavadska, Z., 2015. The measurement and evaluation of the
service quality through customers ‘satisfaction. Procedia Economics and Finance, 26,
pp.126-130.
Linton, J.D. and Solomon, G.T., 2017. Technology, Innovation, Entrepreneurship and The
Small Business—Technology and Innovation in Small Business. Journal of Small Business
Management, 55(2), pp.196-199.
Madadi, P., Baccelli, F. and de Veciana, G., 2018. Shared Rate Process for Mobile Users in
Poisson Networks and Applications. IEEE Transactions on Information Theory, 64(3),
pp.2121-2141.
Mador, M. and Butler, C.L., 2015. Kingston University London: Using entrepreneurship
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McCracken Jr, B.G., Spanel, R.L. and Urbanek, R.E., Sprint Communications Co LP,
2018. Mobile communication device profound identity brokering framework. U.S. Patent
9,949,304.
Oluyede, B.O., Motsewabagale, G., Huang, S., Warahena-Liyanage, G. and Pararai, M.,
2016. Dagum-Poisson Distribution: Model, Properties and Application. Electronic Journal of
Applied Statistical Sciences, 9(1), p.169.
Pearson, C. and Hussain, Z., 2016. Smartphone addiction and associated psychological
factors. Addicta: The Turkish Journal of Addictions.
Stott, R.N., Stone, M. and Fae, J., 2016. Business models in the business-to-business and
business-to-consumer worlds–what can each world learn from the other?. Journal of Business
& Industrial Marketing, 31(8), pp.943-954.

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Appendix: