Eco-Fone: UK Smartphone Market and Business Expansion Report

This report provides a comprehensive analysis of Eco-Fone, a UK-based smartphone company. It begins with an overview of the UK smartphone market, examining usage trends and common activities. The report then applies linear forecasting and Poisson distribution models to predict future performance. It assesses the increasing smartphone usage among adults, exploring the factors behind this trend. Furthermore, the report evaluates the potential expansion of Eco-Fone's business to Kingston, analyzing the pros and cons. The report also includes a cost analysis for a new building, examines logos, and develops hypotheses for understanding significance levels using Z-score analysis. Additionally, it assesses questionnaire responses to gauge customer satisfaction and likelihood of recommending the company's products and services. Finally, it includes the use of Poisson distribution and concludes with a summary of findings.

Eco - Fone

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
a. Overview of the smartphone market within UK ....................................................................1
b. Reflecting the top 4 activities .................................................................................................2
TASK 2............................................................................................................................................2
Linear forecasting model.............................................................................................................2
TASK 3............................................................................................................................................3
Assessing the grounds for increased use of the smartphones in the adults age group ...............3
TASK 4............................................................................................................................................4
Analysis over the expansion of Eco-fone's business to Kingston ..............................................4
TASK 5............................................................................................................................................5
a. computing cost of new building .............................................................................................5
b. Logos.......................................................................................................................................6
TASK 6............................................................................................................................................6
Developing hypotheses for understanding significance level.....................................................6
Analysing the value of Z-score ..................................................................................................7
TASK 7............................................................................................................................................8
Assessment of the response from the Questionnaire...................................................................8
TASK 8............................................................................................................................................9
Poisson distribution.....................................................................................................................9
TASK 10........................................................................................................................................10
CONCLUSION..............................................................................................................................10
TASK 9..........................................................................................................................................11
REFERENCES..............................................................................................................................11

INTRODUCTION
Mobile is referred as the wireless device which allows the users in making and receiving
the calls and also in sending the messages. Smartphone is considered as the cellular telephone
that contains an integrated computer and the other attributes originally attached with the
telephones like operating system, ability in running the software applications and web browsing.
The present report is based on Eco-fone, a UK based company that deals in selling smartphones
and an accessories from its two of the shops that is in Putney and in Richmond. Furthermore, the
study includes the review of the smartphone market in the UK with reflecting the most common
activities for which the smartphone is been used. Different models has also been applied such as
linear forecasting, poisson distribution in order to forecast the success of an entity. Moreover, the
study also throws a deeper insights towards the usage of smartphones by the old age people and
the grounds on which the company should expand its business into Kingston.
TASK 1
a. Overview of the smartphone market within UK
The workforce in UK presently numbered as 33.5 million out of which 32 million are
employed (Daskalakis, Diakonikolas and Servedio, 2015). A per the research, half of the
respondents that are currently in the employment make use of the smartphones for minimum one
of the work activity.
As the year passes, mobile phone is becoming an essentials for the people in the UK and
also becoming more and more easier and enticing in use. As per the survey made in this year it
has been represented that more than 34% of the UK adults has a curiosity in looking into their
cell phones or smartphones in every five minutes and half of the people that is 55% do such a
behaviour within every quarter of hour (overview of smart phones in UK, 2018). As the day ends
greater than 3 quarters of the adults that is in terms of value depicted as 78% checks their own
phones within every hour before going for the bed, potentially are exposing themselves towards
the bright light that impacts the quality of their sleep.
Around 17% of the people has a age between 16-24 looks into their smartphones for at
least 100 times on a daily basis, 12% of the 16-19 years old individual claimed for 200 views on
a routine basis. Majority or more than 34% of the individuals that aged in the range of 16-75
years old uses their cell phones almost always whether they are been eating food with their
family or are hanging out with their friends (Charlin and et.al., 2015). At the time of crossing the
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roads, around 11% people make use of the mobile phones that aged in mid of 16-75 years which
causes accident.
b. Reflecting the top 4 activities
2016 2017
Email 41.00% 37.00%
Making standard calls 33.00% 32.00%
managing workload 8.00% 6.00%
making voice calls 6.00% 4.00%
Interpretation- The above analysis shows that smartphones are commonly used for
email, making standard calls, managing the workload and in making the voice calls. Over the
period its use is declining with very small proportion which does not impact a great change. The
gap in between the results is hardly of 2-3% which means that very few people has reduced the
use of smartphones for email, managing the workload, vice calls and the standard calls.
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Email Making standard calls managing workload making voice calls
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
41.00%
33.00%
8.00% 6.00%
37.00%
32.00%
6.00% 4.00%
2016
2017

TASK 2
Linear forecasting model
Year
Smartphone usage by adults
during 2012-2017
1 2012 52.00%
2 2013 62.00%
3 2014 70.00%
4 2015 76.00%
5 2016 81.00%
6 2017 85.00%
7 2018 93.77%
8 2019 100.28%
Interpretation- From the above calculations it has been highlighted that linear forecasting
model reflects relationship in between independent and dependent variable. It helps in making
forecasting effectively with accurate estimations. In this study, scholar has made use of time
series analysis tool that assist in assessing the previous and future period data because it provides
fro using the historical data in order to forecast appropriate rates for long period or in relation to
future periods.
TASK 3
Assessing the grounds for increased use of the smartphones in the adults age group
Sale of the smartphones is booming with the older customers in UK as per the market
study, it has been indicated that 71% of the old age people lies between 55-75 years owns a
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capable handset (Þórarinsdóttir, Kessing and Faurholt-Jepsen, 2017). Researcher has
highlighted that older adults age group people had been seen as the faster adoption generation of
the mobile phones in last five years. However, it has also been identified that members of this
demographic tend to use the smartphones very less than the younger people. The major reason
behind higher use of the smartphones by the old age group includes different attributes of the
phone. Increase in the number of parking meters might encourage for the payment through
mobile phone and difficulty has also been increased in respect of order for a taxi without making
use of an app. Bigger screens is also an attractive feature of the smartphones that induces an
adult for buying it as this large screens helps an older people in viewing easily and their eyesight
problem cannot act as resisting factor for them (Cho, Kim and Park, 2017). Similarly, louder
speakers of the mobile phones enables the adults in listening clearly as with ageing listening
skills becomes weak. Facial recognition is also counted as very much popular mechanism in
terns of authentication among the elders. Thus, Deloitte suggested that 55-75 years of the old age
people higher than the average wealth may make the members more likely in purchasing the
premium handsets.
TASK 4
Analysis over the expansion of Eco-fone's business to Kingston
Should we expand our business to Kingston?
Pros Score/10 Cons Score/10
Increased revenue 7 Lack of resources 6
Enhanced reputation 5 Understanding culture 4
Wide market share 6 Reduced quality 3
Higher profitability 8 Low profitability 5
Large customer base 5 Loss of the customers 3
Diversification 9 Expansion cost 7
Exposure 4 Increased borrowings 6
Total Pros 44 Total Cons 34
Average Pros 6.28 Average Cons 4.8
Interpretation- From the above evaluation it has been indicated that Eco-fone should
expand its business operations in Kingston because the resulted benefits from the expansion are
more than the limitations resulting as 44 as pros and 34 as cons for which an average value
evaluated as 6.28 in terms of advantages and 4.8 in respect of disadvantages of expansion. This
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means that the company will generate increased revenue, gain a wider market share, brand
reputation increases, higher profitability, large customer base, exposure to different market
opportunities and diversification (Reyes, Qin and Brown, 2018). However, it might face may
difficulties such as shortage of resources, understanding new culture and increased borrowings.
TASK 5
a. computing cost of new building
As per given in the question-
Repayment period of mortgage= 15 years
= £ 350000 / ({[ (1+ 0.7)* 15] – 1} / [.07 (1 + 0.07)* 15]
= £ 350000 / 1.3.75
= £ 25455
Repayment amount on monthly basis= 25455 / 12
= £ 2121
Interpretation- By the above computation, it has been determined that total mortgage
amount resulted as £ 350000 for the period of 15 years at an interest rate of 7% per year. By
dividing the amount with that of the discounting factor, resulted figures evaluated as £ 25455.
For calculating the mortgage amount on monthly basis the value is been divided by 12 that
resulted the amount that has to be repaid in each month equated to £ 2121.
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b. Logos
TASK 6
Developing hypotheses for understanding significance level
Particulars Figure
Average of Sample 40
Mean 100s
Standard deviation (SD) 20
Second shop
Mean 90
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SD 40
Analysing the value of Z-score
H0: Null hypothesis: There is no statistical significant difference in the mean value of
net taking pertaining to two shops.
H1: Alternative hypothesis: There is a statistical significant difference in the mean value
of net taking pertaining to two shops.
Table 1
Mean (first shop) 100
Mean (second shop) 90
SD (one shop) 20
Z score analysis
(100 – 90) / 20
= 0.5
Table 2
Average (one shop) 100
Average (second shop) 90
Standard deviation (two shop) 40
Z score analysis
(100 – 90) / 40
= 0.25
Interpretation- From the assessment it is been reflected that the value of standard
deviation and mean equates to 60 and 90 which depicts an average value and the dispersed value
from the means. Moreover, evaluation of Z-score value for the first table resulted as 0.5 which
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means that alternative hypothesis is accepted as the value is lower and equates to 0.5. This in
turn means that there is a significance difference in the mean value of net taking that pertains to 2
shops. Similarly for second table also the value is lower than 0.05 that is 0.25 which clearly
means that alternative hypothesis is been accepted and the other one is rejected.
TASK 7
Assessment of the response from the Questionnaire
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Interpretation- In this the analysis shows different mean value that for different questions
that is been asked by the researcher to the respondents. Referring to the question 1, it has ben
seen that as the mean value resulted as 20.95 which means customer has made the last purchases
of the Eco-fone products and the services in between 3 and 6 months. Similar to it, value of
mean for question 2 attained as 2.89 that clearly reflects the customer has used the products and
services of Eco-fone for the period of 3 years that is in between 1 & 3 years. For third question, it
is been indicated that the average value equates to 1.98 that is 2 for 3a which indicates that
customers provide a fair rating in respect of the service support of Eco-fone, for 3b value
attained as 2.50 that is 3 which shows a good rating regarding the quality of its product, 3c mean
value ascertained as 3.25 that also reflects god rating towards its sales staff and 3d that depicts
2.51 as mean value and a good rating in relation to its pricing value (Dong, Sun and Li, 2017).
Fourth question relates with the customer satisfaction where the mean value represented as 2.51
which represents that the customer is dissatisfied with the services of the company. Fifth
question is about the liking of the customers in doing the business with Eco-fone, the mean value
for this question accounted as 2.52 which shows that customer is unlikely in making the
partnership or doing the business with the Eco-fone company. Lastly, the question states that the
customer will recommend about the use of products and services of Eco-fone to others, for this
the average value equated to 3.71 that is close to 4 which in turn clearly reflects likeliness of the
customers in recommending the products and the services provided by the Eco-fone to other
people so that market share and the customer base of the company will be increased.
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TASK 8
Poisson distribution
Interpretation- Poisson distribution is counted as the discrete probability distribution of
several events that occurs within a given time period by providing the information in relation to
average no. of the time an event occurs within a specific period of time. It is counted as the most
useful method in analysing the quality procedures and in forecasting the success of the company
in the future.
TASK 10
CONCLUSION
By summing up the above report it has been concluded that over the years usage of
smartphones has been increased with a high pace in relation to the work activities and for
personal communication (Su and et.al., 2017). Adults group is also getting more and more
attracted towards the smartphones because of its attractive features and easy use. By applying the
linear and poison distribution forecasting is been made with the use of time series analysis that
depicts an increase in the sales of the company in the year 2018 and 2019.
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