Eco-Fone 2019 Business Report: Market Analysis and Expansion Strategy

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

Report for Eco-Fone 2019
Introduction
Eco-Fone is a company who sells Smartphone in Putney and Richmond; Company had a study
profit in the recent year which guides management for expansion strategy. The company
conducted a survey to understand various trends happening in the market. There is a significant
change in purchasing behaviour of Smartphone in old age generation and also other changes
related to taking of two shops of the company. For that purpose, the company evaluates market
scenario in this task and further various statically tools are used to understand the Impact of the
market trend which guide management to perform an adequate strategic decision.
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Report for Eco-Fone 2019
1. Analysis of Issues for Eco-Fone Smartphone
1.1 An Overview of the Mobile phone market in the UK
In the current scenario, the mobile market is most fluctuated market an also a dynamic place
for work. As the demands of Smartphone are increased it became a bigger place for profit
earning to mobile manufacturing companies. When it comes to the United Kingdom approx 32
Million people used mobile and Smartphone in their daily routine life. The basic purpose of a
Smartphone is mailing services and calling or voice mail. Approx. 44 percent citizen use
Smartphone for their mail services and 34 percent employee use a Smartphone for the purpose
of calling and voice mail.
The Smartphone is the tool which helps individuals to connect with other people with social
sites. The trend of social sites and other unofficial mobile application like instant messaging,
mobile browser and navigations are expanded as the market of Smartphone are attracted
(Deloitte, 2017). This provides a set of features which a Smartphone need to be included for
the purchasing behaviour of the customer in the United Kingdom. The smartphone can be a
tool which is the most needed part of every employee routine life in the near future.
As here data from Deloitte report represent
that approx 41% employee is in the United
Kingdom use Smartphone for email services
and Aproxx 44% employee are not using
mobile for the purpose defines in the report.
They use a Smartphone for some other purpose
which is not specifically defined (Deloitte,
2017). This report is based on the data
collection of employee- which is come
between the ages of 18-75 which provide an
overall market scenario. Although it does not
include child which is also used Smartphone
for their social and gaming activities they are
not able to purchase a Smartphone due to dependency on parents. Graphical representation
provides specific usage of Smartphone which provides future bracket in which the company
needs to concentrate and explore for their market.
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Report for Eco-Fone 2019
1.2 Forecasting the UK Adult Smartpho0ne use
For understanding the future market of Smartphone in United Kingdom Linear analysis can be
an option which provides market movement in the near future which is based on past
experience. Through this linear graph it is clearly defined that usage of Smartphone had steady
growth in the market and they are the most usable digital device among the population
((Deloitte, 2017)). As the laptop is mostly used the product up to 2015 but after 2015
Smartphone takes the place of laptops which defines market growth rate. A company needs to
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2012 2013 2014 2015 2016 2017
0
20
40
60
80
Chart Title
Laptops
Smartphones
Linear (Smartphones)
Tablets
Years
Usage Percentages
Year Percentage
laptop Smartphone Tablets
2012 73 52 16
2013 76 62 36
2014 75 70 50
2015 79 76 60
2016 76 81 63
2017 78 85 68

Report for Eco-Fone 2019
understand the trend of the customer which clearly define in the graph that people are more
attracted toward Smartphone in recent year. Although the linear graph provides a future
forecast based on linear relation it is not able to understand the impact of other digital devices
on the usage of Smartphone (Deloitte, 2017). Laptop and tablet influence purchasing behavior
of customer toward Smartphone. So, management can also use regression and correlation
analysis for adequate forecasting of the Smartphone market in the United Kingdom.
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Report for Eco-Fone 2019
1.3Smartphones - A potential market for older customers
According to the study of Delloite mostly employee in the United Kingdom used Smartphone
for their daily routine activities (BBC, 2017). A Smartphone is a gadget which provides better
mobility and smartness in the work experience of an individual for their routine activities.
In the recent five years, older age citizen in the
United Kingdom adopts Smartphone faster as
compared to other generation. Smartphone
became more popular and usable for older age
people to maintain their daily routine activities.
Uses of Smartphone in old age people can be
identified as 20% of citizen often used their
Smartphone in 15 minutes. In the old age,
people need to connect with their family which
can be happened through the social site so old aged citizen used Smartphone for their social
activities (BBC, 2017). 50% of adults in the United Kingdom are already installed facebook in
their Smartphone which provides a connectivity network in their old age. Eco-fone is a mobile
manufacturer which provides Smartphone in the market of United Kingdom so as a point of
view of company old age citizen can be a new market segment for their business and also
provide a potential customer for future growth of business in the market.
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Report for Eco-Fone 2019
1.4Feasibility of Expanding business to Kingston using Pros and Constable
Insert text approx. 200 words
Should we expand our business to Kingston?
Pros Score/10 Cons Score/10
Increased customer
reach
10 Limited accessibility 8.5
Increased profit 9 Limited quality 8
Reduce competition 7 Loss of control 8
Increase resources 10 Increased capital
requirement
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New employees 10 Increased staff 9
Improve brand image 9 Increased pressure 8.5
Consumer awareness 8 More expenditure on
infrastructure
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Increased sales 10 More funds 8.5
Total pros 73 Total cons 70..5
Average pros 9.125 Average cons 8.8125
Eco-fone wants to expand their business for which they want to enter a new market. A
company wants to enter a new market they need to defaced various factor and trigger forces
exist in the market (Brandongaille, 2015). As many of the factors can be the opportunity for
the company and also many of the factors can be threats. A proper analysis of the environment
helps management to determine proper strategy related to expansion in the United Kingdom.
As the company had limited sources and they need to proper utilization of resources in the
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Report for Eco-Fone 2019
market so they need to the developed adequate strategy which consider all positive and
negative factor related to the environment. In the new area, management needs to expand their
budget in which they need to hire a new employee, Increase the cost of marketing and need
additional fund to maintain their operational activities (Kokemuller, 2019). It’s better to
maintain a balanced scorecard which provides a better understanding of factor need to consider
while drafting strategy for their expansion.
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Report for Eco-Fone 2019
1.5Costs of a New Building
Insert text approx. 150 words
A. Computation of monthly installment of EMI for the Loan required for expansion
Computation of Monthly EMI requirement for Eco-fone
Loan amount 350,000
Loan term 15 year
Payment per year 12 year
Rate of interest 7%
Monthly Instalment payment – £ 3,146
B. Major Financial Institution who provide mortgage loan to the customer.
 Skipton Building Society
 Leeds Building Society
 Bank of Ireland
 TSB Banking group
 OneSaving bank
 UBS
 Paragon Mortgages
 Nottingham Building Society
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Report for Eco-Fone 2019
1.6Testing the Possible Difference in Net Takings in
the Two Shops
Insert text approx. 250 words
Z-test:
Z-Test is a parametric test
which defines
relations among two variables of population and sample size. This
statistical test is applied when the population and sample size is more
than 30 samples. It means test applied on large data to understand the
possible difference between mean values of the variable (Stattrek, 2019,). Z test is a highly
populated and comfortable test to analyze the large volume of data for their research
perspective. As in this scenario, management needs to understand the popularity of Smartphone
in two different locations for which Z test is a bet suitable parametric test for management for
their objective of market survey.
In the given Scenario Two hypothesis is drafted for anticipating result for market survey.
Null Hypothesis = -0.05>H0<0.05 = No similarity between undertaking of shops
Alternative Hypothesis = 0.05<H1>0.05 = similarity exist in undertaking of shops
From given data:
Particular Amount
Size of sample 40 40
Deviations (Standard) £20 £40
Mean £100 £90
The formula that is applied for calculations:
z = (X - M) / [ σ /sqrt(n) ]
From calculations, the result of Z-Test will be 1.41 which reflects value in Z test is 0.0735 at
Degree of Freedom of 0.05.
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Report for Eco-Fone 2019
In this test Null hypothesis is rejected as the Z test value is 0.735 and it is higher than 0.05. It
defines that both shops had similarity in taking. As Z test provides a result which reflect the
relation between two shops of eco-fone and their net taking is had no difference among the
shops. As it considers similarity level exist in the shops.
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Report for Eco-Fone 2019
1.7Customer Satisfaction
Eco-fone company collected information from the customer in the united kingdom to evaluate
the performance of the company in the market and identified customer satisfaction level from
the Smartphone of eco-fone. For that survey company collected 103 sample size of the
questionnaire so that they evaluate brand image in the market for the company.
1): Purchasing Behavior of customer
Result Frequency
1 25
2 20
3 12
4 27
5 19
Mean (Average) 20.6
2): Time period to consumer product
Result Frequency
1 8
2 27
3 37
4 30
5 1
Mean 20.6
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