Eco Fone: Analysis of Smartphone Market and Business Expansion

This report provides a comprehensive analysis of the UK smartphone market, focusing on Eco Fone Smartphones Limited. It begins with an overview of the market, including smartphone usage statistics among employed individuals and the applications they use. The report then presents a bar graph and a line chart illustrating market trends and penetration rates. It further explores the potential of the smartphone market for older customers, highlighting features and trends attracting this demographic. The feasibility of expanding the business to Kingston is assessed, considering both pros and cons. The report also includes a financial analysis, including the costs of a new building and mortgage calculations. Additionally, the report presents statistical analyses using Z-score and Poisson distribution. Finally, the report concludes with a summary of findings and recommendations.

Eco Fone

Table of Contents
INTRODUCTION ...............................................................................................................................3
MAIN BODY ......................................................................................................................................3
TASK 1.................................................................................................................................................3
a. Overview of mobile phone market in the UK.............................................................................3
b. Bar graph......................................................................................................................................3
TASK 2.................................................................................................................................................4
Line chart.........................................................................................................................................4
TASK 3.................................................................................................................................................5
Smartphones- A potential market for older customers ....................................................................5
TASK 4.................................................................................................................................................6
Feasibility of Expanding business to Kingston................................................................................6
TASK 5.................................................................................................................................................6
a. Costs of new building..................................................................................................................6
b. Eght logos of well-known commercial mortgage lenders in the UK.........................................7
TASK 6.................................................................................................................................................8
TASK 7.................................................................................................................................................9
TASK 8...............................................................................................................................................10
Poisson Distribution.......................................................................................................................10
TASK 9...............................................................................................................................................10
References......................................................................................................................................10
REFERENCES...................................................................................................................................10
TASK 10.............................................................................................................................................12
Conclusion.....................................................................................................................................12

INTRODUCTION
In nowadays life, mobile phones has become one of the essential human requirement without which
no one can imagine a life. The present report is based on Eco Fone Smartphones Limited company
which is engaged in the business of selling smartphones, its accessories and other essentials related
to phones. It carries on its business of selling from two shops one in Putney and other in Richmond.
This company is not engaged in dealing of laptop and tablet. This report will define use of
smartphones among old customers along with features attracting them. Also, it will disclose some
practical analysis related to research made in the context of smartphone usages.
MAIN BODY
TASK 1
a. Overview of mobile phone market in the UK.
As per the research made in the UK market, it has been assessed that out of 33.5 million
people, 32 million people are working or employed in some work. It has been identified that half of
people which are currently employed in some employment work, makes use of their smartphones
for business related work. It has been determined that 41% people uses their phones for the purpose
of making email, messages (Deloitte. Co, 2019). While 34% uses for voice calls and 23% on the
other hand uses it for managing their dates i.e. for calender management.
Some applications of smartphone such as legacy information and reporting systems has low
usages because of unawareness about its functions or difficult operating systems. Also, 17% people
prefer it for viewing documents and making calls of either international or national standards. Some
enterprises makes use of unofficial smartphone for their business related activities having main
focus on workflow instead of communication such as instant messages, voice call, browsers, photo
application, navigation purposes etc. It can be stated that at least 43% workers makes use of
WhatsApp application one in a day.
b. Bar graph
Usage of Smartphone 2016 2017
Email 41 37
Making standard calls 33 32
Calendar management 3 0
Viewing document 17 0

Interpretation – From the above file it can be interpreted that 41% people uses their phones
for the purpose of making email in 2016 and in 2017 it was 37%. While 33% uses for standard
calls in 2016 and 32% in 2017. Only 3% people uses it for managing their dates i.e. for calender
management in 2016. Whereas 17% people in 2016 uses their smartphone for viewing document
which has decline in 2017.
TASK 2
Line chart
Penetration rate
Email
Making standard calls
Calendar management
Viewing document
0 5 10 15 20 25 30 35 40 45
41
33
3
17
37
32
0
0
2017
2016

Blue line – Penetration Rate
Grey Line – Linear (penetration rate)
Interpretation- From the above penetration rate has been increasing from the year 2012 to
2019 i.e. from 52% it has increased to 100% as per the expectation made. The usage of smartphone
has been increasing in both the adults and young age people thereby spending most of their time in
it. Linear forecast can be made properly as it doesn't give clear understanding of data by the line
graph. Time series model used for analysing data related to smartphone users is increasing day by
day. Thus, this model provides accurate statistics about expected rate for the year 2018 and 2019.
TASK 3
Smartphones- A potential market for older customers
In United Kingdom 71% of older people are using their own handset. Research that is being
conducted is providing information that there are large number of older people that are using
mobile phones in the country and in coming years it got increases at a fast pace. As compared to
younger people older person are using more smartphones and coming in highlights nowadays
according to research it is said by researcher. 20% people are checking their phones in 15 minutes
as compared to other national average of 56%. around 50% people are using Facebook as compared
to younger age people in UK (Cardano, 2018). It facilitate them in making payment through mobile
and they don't have to go anywhere for doing their work so it is beneficial for them. As modern
smartphones have bigger screens that will help them in easy access to it. Mostly, Apple and
Samsung is becoming more attractive for older people as it is streamlined with various functional
2012 2013 2014 2015 2016 2017
0%
10%
20%
30%
40%
50%
60%
70%
80%
90% f(x ) = 0.0651428571x + 0.482

features in mobile phone. According to research it is found out that older people like idea of just
pick it and all work will be done easily.
TASK 4
Feasibility of Expanding business to Kingston.
Should we expand our business to Kingston?
Pros Score/
10
Cons Score/10
Increase in market share & value 7 Costly 2
Increase profitability 8 Increase in expenditure 1
Large customer base 6 Mood swing 3
Browsers 5 Battery 2
Better Communication 7 Culture 4
Messaging 3 Time management 5
GPS tool 4 Low profit 3
Total Pros 40 Total Cons 20
Average Pros 5.7 Average Cons 2.9
Interpretation- From the above table it can be concluded that it will better for the company
to expand its business operations to Kingston. It will help the company in increasing its market
share as well as value thereby gaining competitive advantage. Also, it will come up with some new
features which earlier smartphones are not having and thus will help company in increasing its sales
revenue and profitability.
TASK 5
a. Costs of new building
Asking price 400000
Negotiable price 350000
15 years
Repayment mortgage 350000
Debt payment [((1+0.07)^15)-1]/[0.07*(1+0.07)^15]
Total amount of loan /
Discounting factor 1.76/0.19
9.11
350000/9.11

Total amount of loan 38419.32
Repayment amount on monthly
basis 38419.32/12
3201.61
Interpretation - From the above calculation it can be interpreted that price of negotiable is
350000 & dealing price was 400000. Also, deal has been done for 15 years. The loan amount of
provided to customer is 9.11 after discounting into cost with rate of mortgage 7 %. Repayment
mortgage amount is 35000. The total amount of loan will be calculated by dividing repayment
mortgage by discounting factor. Therefore, amount of loan is 38419.32 and repayment amount on
monthly basis will be 3201.61. It can be said that mortgage rate have impact on repayment amount
which will be given back to lender. Debt will be provided to customer after deducting discounting
amount from mortgage rate will affect cost of building in the future & lender is required to pay
3201.61 on monthly basis.
b. Eght logos of well-known commercial mortgage lenders in the UK.

TASK 6
Particulars Figure
Sample 40
Average 100s
Standard deviation 20
Second shop
Mean 90
Standard deviation 40
H0: Null hypothesis: There is no significant difference in net taking of two shops.
H1: Alternative hypothesis: There is significant difference in net taking of two shops.
Assessment of Z score value
Table 1

Mean value of one shop 100
Mean value of second shop 90
Standard deviation (one shop) 20
Z score assessment (100 – 90) / 20
0.5
Table 2
Mean value of one shop 100
Mean value of second shop 90
Standard deviation (two shop) 40
Z score assessment (100 – 90) / 40
0.25
Interpretation – It can be assessed that Z score value in table 1 is very low in comparison to
table 2. It will bring significant difference in two shops net price. The value determines is greater
than 0.05 therefore it is null hypothesis and no significant difference will be there.
TASK 7
Questionnaire
Ques 1 Ques 2 Ques 3a Ques
3b
Ques
3c
Ques
3d
Ques
4 Ques 5 Ques
6
Mean 2.95 2.89 1.98 2.50 3.25 2.51 2.51 2.52 3.71
Standar
d Error 0.15 0.09 0.08 0.09 0.12 0.10 0.12 0.09 0.11
Median 3 3 2 2 4 3 2 2 4
Mode 4 3 2 2 4 3 2 2 4
Standar
d
Deviati
on
1.48 0.95 0.84 0.87 1.25 1.07 1.19 0.92 1.15
Sample
Varianc
e
2.18 0.90 0.71 0.76 1.56 1.13 1.41 0.84 1.33
Kurtosi -1.46 -0.72 0.24 -0.65 -0.82 -1.21 -0.17 -0.13 0.24

s
Skewne
ss -0.03 -0.27 0.75 0.26 -0.89 -0.16 0.84 0.47 -1.10
Range 4 4 3 3 4 3 4 4 4
Minimu
m 1 1 1 1 1 1 1 1 1
Maxim
um 5 5 4 4 5 4 5 5 5
Interpretation -Majority of people are in favour of product being sold by the company and
most of the people are using it currently as it gives them satisfaction. It can be said that difference in
variance between products can create difference in standard deviation & slow down the growth of
company in the near future. Also, it can be said that for achieving effective growth, increase in
profitability such product will be better option.
TASK 8
Poisson Distribution
Poisson random variable 2
Mean rate of success 15
Poisson probability P(X=2) 0.000
Cumulative probability P(X<2) 0.000
Cumulative probability P(X>2) 1
Cumulative probability P(X>=2) 1
Interpretation - From this table it can be evaluated that company's operational activity helps
in improving quality & provides high earning & profit margin. This will in turn provide competitive
advantage & achievement of set targets can be done.
TASK 9
References
REFERENCES
Books and Journal

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method multilevel study of neighbourhood context and postnatal
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Pflegebedürftigen. Schattauer Verlag.
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and practice.
Meusel, C.and et. al., 2018. Evaluating operator harvest technology within a high-fidelity combine
simulator. Computers and electronics in agriculture. 148. pp.309-321.
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a green approach. Current Green Chemistry. 5(2).pp.108-113.
Sarkar, C. and et. al., 2015. Exploring associations between urban green, street design and walking:
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Stewart, R., 2019. Voluntary National Review of progress towards the Sustainable Development
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Online
Deloitte. co. 2019. [Online]. Available through:
<https://www.deloitte.co.uk/mobileuk2017/assets/img/download/global-mobile-consumer-survey-
2017_uk-cut.pdf>.

TASK 10
Conclusion
It can be summarised that most of the working people are using their smartphones for work purpose
and business related activities in the UK. Also, smartphone has been used by people for leisure
activities such as whatsApp, instagram etc. Increase in use of smartphone has been noticed from
year till now in both the young age group as well as in the old age people.