Eco-Fone Smartphones Market Analysis and Expansion Feasibility Report

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

Report for Eco-Fone 2019
Table of Contents
Introduction.............................................................................................................................................2
1. Analysis of Issues for Eco-Fone Smartphones...................................................................................3
1.1 An Overview of the Mobile phone market in the UK......................................................................3
1.2 Forecasting the UK Adult Smartphone use.....................................................................................4
1.3 Smartphones - A potential market for older customers.................................................................7
1.4 Feasibility of Expanding business to Kingston using Pros and Constable........................................8
1.5 Costs of a New Building................................................................................................................10
1.6 Testing the Possible Difference in Net Takings in the Two Shops.................................................12
1.7 Customer Satisfaction...................................................................................................................14
1.8 Quality Procedures.......................................................................................................................19
1.9 Conclusions & Important Findings................................................................................................20
2. References......................................................................................................................................21
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Report for Eco-Fone 2019
Introduction
In this report, it discusses Eco-Fone Smartphones is selling the smartphones and accessories
in the United Kingdom and it well established in 2014 from two stores one in Putney and
another one in Richmond. The organisation is having the continuous great sells and in well
profit margin. In two stores are having a substantial variance with the sales and awareness of
customers. Many peoples are more likely who is taking the first-time smartphone in life. It
discusses the smartphones market and smartphone is using by the older public in the United
Kingdom. Eco-Fone is thinking to open a new branch in Kingstone and it takes the Pros and
Cons of the branch from the public.
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Report for Eco-Fone 2019
1. Analysis of Issues for Eco-Fone Smartphones
1.1 An Overview of the Mobile phone market in the UK
In the United Kingdom, every year the smartphone is attractive and enticing to use. In 2017 mid the
adult is adopting the smartphones to rise at 85 percent. As per the Deloitte, penetration increased
every year by four percent, in all the public is having the adoption rate is 52 percent. Incoming the
year the percentage will increase with the two or three percent in each year and the younger age
group (18-55) will be 90 percent (Deloitte, 2017).
As per the picture, the smartphone is having the top among all the competitors such as a laptop,
tablet, and computer. The age group of (18-55) has used the 3393 new phones in the market. In the
United Kingdom, the smartphone is a clear lead among all the electronic devices with the 7 percent
lead to the laptop and 17 percent with a tablet. The smartphones are having needs with every person
by doing any task or thing in daily routine (Deloitte, 2017). Common applications in every day that our
presence made for the smartphones, communicating with the friends or teachers, planning for
journey and cab booking that all are used in the smartphones device.
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Report for Eco-Fone 2019
1.2 Forecasting the UK Adult Smartphone use
Year Smartphones
2012 52
2013 62
2014 70
2015 76
2016 81
2017 85
Linear equation
2012 2013 2014 2015 2016 2017
0
10
20
30
40
50
60
70
80
90
Smartphones
Smartphones
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Report for Eco-Fone 2019
In the United Kingdom, smartphones are having figures with increment in the last five years.
The smartphones will grow in upcoming years and that is increased by the 18-55 year age
group.
Polynomial Trade line Method
Forecast
Year Smartphones
2018 87
2019 88
Polynomial Trade line Method
2018 2019
86.4
86.6
86.8
87
87.2
87.4
87.6
87.8
88
88.2
Smartphones
Smartphones
Polynomial (Smartphones)
The Polynomial trade line method is a concise method to show the figures in forecast; the
polynomial trade line method is used to finding the problems in the data of incomes and
expenditures and gives the effective method to make the perfect line method (Office, 2019).
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Report for Eco-Fone 2019
1.3 Smartphones - A potential market for older customers
According to Kelion, in the United Kingdom, smartphones is obligating affluent in the market.
The study is saying that 71 percent of 55-75 age group is using the own app-capable handsets.
In the current market, most of the user is using the handsets by older peoples as compared to
younger people. The data has a survey with the 1163 peoples and which of 20 percent public
is saying that they are using or checking the smartphone every 15 minutes compared with the
56 percent of the national average. In 70 percent of adults, they had installed the app of
Facebook by 50 percent.
The Deloitte suggested that the age group of 55-75 are more like to purchase an expensive
smartphone with creative features. Many of the peoples are like to buy for the payment via
mobile phone and use the cab facility in every area of the United Kingdom. Smartphones are
having the great features, one of the industry is highlighted that older persons are seeing that
they all feature changes as per the older public and they get the work in easy method (Kelion,
2017). The most things like by older public are facial recognition authentication to use with
the creative features.
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Report for Eco-Fone 2019
1.4 Feasibility of Expanding business to Kingston using Pros and Constable
Should we expand our business to Kingston?
Pros Score/10 Cons Score/10
Increased customer reach 9 Limited accessibility 8.5
Increased profit 6 Limited quality 7.5
Reduce competition 4 Loss of control 7
Increase resources 8 Increased capital requirement 10
New employees 6 Increased staff 9
Improve brand image 8 Increased pressure 8
Consumer awareness 5 More expenditure on infrastructure 10
Increased sales 10 More funds 8
Total pros 56 Total cons 68
Average pros 7 Average cons 8.5
As per the Pros and Cons of the company is expanding the business in the Kingstone. The
company has to improve Pros with the expanding strategy and market research. The company
has done the research in the market tendency; the Kingstone is having the highest number of
Cons then the company has to plan for the different strategy with the different area. On the
other hand, the Cons can be minimized with the research or find the main problem that can
be raised in the area. In the Kingstone area the most problem has raised on the capital
requirement and more expenditure on infrastructure that can be solved with the help of
planning or introduce the liquidity share among the market, so then it will reduce the capital
requirement.
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Report for Eco-Fone 2019
1.5 Costs of a New Building
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
The monthly cost has been calculated to know how much cost occurs in the loan and then
it will be known and then it will be managed by the company (Business today, 2013)
B. Major Financial Institution who provide mortgage loan to the customer.
 One Saving Bank: The One saving bank is the bank, it is a specialist lender, mainly
works carefully with the sub-sectors of the mortgage market an assimilated multi-brand
approach (OSB, 2019).
 TSB Bank: the TSB Bank is providing the commercial mortgage lender to the individual
and small organisation, it also providing the online account view so they get the easy solution
with their need (TSB, 2019).
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Report for Eco-Fone 2019
 The Nottingham Building Society: It is also providing the commercial mortgage to the
customers with a large scale at a minimum rate of interest.
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Report for Eco-Fone 2019
1.6 Testing the Possible Difference in Net Takings in the Two Shops
Z-test Hypothesis
Z-test is the hypothesis test; it can be done distribution of the test statistic in the Null
Hypothesis and approximated by a normal distribution. Z-test will test in minimum 30
samples or it may take large samples. Z-test will separate critical values under each sample
size (Trafimow, et. al, 2017).
With the help of the null hypothesis, the Z-test will complete and that will perform in the
significant manner and assumptions required with 0.05>H0<0.05 (S, 2018).
From given data:
Particular Amount
Size of sample 40 40
Deviations (Standard) £20 £40
Mean £100 £90
The formula that is applied for calculations:
From calculations, the result of Z-Test will be 1.41
Null hypothesis
The Null hypothesis is one of the critical hypothesis is used under the organisation and this
hypothesis is used the only minimum organisation for the specific task because this
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Report for Eco-Fone 2019
hypothesis is working with the single aspects. The hypothesis is the opposite hypothesis with
the entire hypothesis for the specific reason it is useful for the organisation (Zongming, 2019).
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