Eco-Fone Expansion into the United Kingdom: A Market Analysis Report

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Summative Assessment (Eco-Fone)
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Table of Contents
Introduction:....................................................................................................................................3
1.......................................................................................................................................................4
2.......................................................................................................................................................6
3.......................................................................................................................................................8
4.......................................................................................................................................................9
5.....................................................................................................................................................10
6:....................................................................................................................................................11
7:....................................................................................................................................................13
8:....................................................................................................................................................17
9:....................................................................................................................................................18
10:..................................................................................................................................................19
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Introduction:
Eco-Fone is the mobile manufacturing company which wants to expand their business operations
in United Kingdom for which they need to analysis various aspect which provide relevant
information for better decision making. This study is conducted to analysis various marketing ,
financial and technical aspects of the company. Further in this study all the activities of the
expansion are discussed and evaluated so that management is able to analysis the qualitive
information which can be helpful in decision making in context of expansion strategies in the
market.
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1
Smartphone industry is the highly dynamic market segment which is revolve on daily basis by
the introduction of various new technologies. United Kingdom is the places where ther trends of
Smartphone is highly affected to their customer based in the market. Approx. 32 Millions
employees of the companies are currently used the Smartphone in the market and also used the
services of Smartphone in their routine life activities (Deloitte, 2017). From the above
population approx 44% are the employee who used the Smartphone to excess their mails on their
Smartphone and some of the employee are used Smartphone for voice calling which is around
34% of the population in the market .
( Sources – Deloitte . 2017)
Here the study of Deloitte is defines that maximum people from the population are used
Smartphone for mails and making calls and some of the employee are some of other service sof
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Smartphone. Further it is also reflects that there are some of the new services are also use by the
employee in the United Kingdom (Deloitte, 2017).
Some of the new sevices like Viewwing document on mobile and calendar management are the
emerging services which is used by the users on smartphone.- This data represent the age group
of 18-75 Years which means all the people including old age people also used the smartphonee
for their routine activities.
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2
Year
Percentage
laptop Smartphones 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
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Linear equation is the tool which can be used by the management to analysis the relation among
the variable and gadgets available in the market for the company which can be helpful in
determine the future trends of Smartphone. Further this tool helps in determination of growth
path of Smartphone around the previous year and also helps in determination of future growth of
the company (Taylor et, el., 2015). Linear regression defines that Smartphone had a positive
growth and now became the highest usable gadgets in 2017 which if followed by laptops. This
analysis also indicates that laptop had major competition with Smartphone and had major reason
of downfall in the usage of the Smartphone.
Eco-Fone also need to analysis the relation among the all gadgets in the market for which
management of the company is needed to used regression analysis so that management are able
to recognized relation among the sales of laptops and Smartphone as the both gadgets highly
influenced each other in terms of market demand because laptop can be replaced by Smartphone
in the market.
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3
Eco-Fone want to expand their business activities so they need to understand the new market
opportunity in the market. Company analysis some of the news of United Kingdom market
which help to understand the major opportunity in the market. Further, Company analysis the
news articles of BBC news in which they identified Old Age people are more interested in the
Smartphone which provide new market segment to the company in which they can perform their
business activities (BBC, 2017). BBC news further reflects that the old age people are more
attracted towards the Smartphone as they had many of the features which help them in their
routine life and also provide assistant for some of the activities. Some of the major features like
adequate GUI and big screen of Smartphone are attract Old age people for the use of
Smartphone for their routine activities. Eco-Fone also identified that aproxx. 14 Millions people
from old age generation are used Smartphone which reflects 71% of overall population of the
nation. Smartphone enable them to connect with their loving ones and also helps in ease of doing
for their routine activities.
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4
Should we expand our business to Kingston?
Pros Score/10 Cons Score/10
Increased customer reach 10 New market Challenges 9
Profit Generations 7 Resource Limitations 8
Increase in Market Share 10 Major expensive R & D 10
Strengthen in Brand Value 8 Additional financial Funding 8.4
Increase in Customer Based 8.2 Infrastructure development 7.6
Revenue Generations 8.4 Employee Base Development 9
Resource Development 7.4 Law and regulations of Area 8
Total Pros 59 Total Cons 60
Average Pros 7.38 Average Cons 7.50
Eco-Fone Company wants to expand their business activities for which they need to consider and
evaluated the various factor for the company. Some of the pros and cons are listed by using
balance scorecard tool which can be helpful in assessment of the expansion project for the
company in the market (Macintosh, 2018). Here the checklist indicates that company had major
negative aspects for the expansion and also business had some of the positive aspects which help
them revenue regeneration in the market. Here the business had 7.50 average score for the
business for their negative aspects and average pros also had 7.38 which indicate that company
need to faced major financial loss from their expansion strategies.
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A. Computation of monthly instalment 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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6:
Z-test:
Eco-Fone wants to identified the significance relation among the two shops and their net taking
which helps them to take major decision related to the company’s expansion policies.
Management can used Z test which helps in identification of significance relation of the net
taking from the different retail shops of the company ( Minitab, 2019). To identified
significance relation among the variable z test is used by the company in which they can
ascertain the hypothesis which helps in better decision making for the company.
Hypothesis
Null Hypothesis = 0.05>H0<0.05 = There is no significance relation among the net taking of
shops.
Alternative Hypothesis = 0.05<H1>0.05 = There is significance relation among the net
taking 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:
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From calculations, the result of Z-Test will be 1.41.
From this test result is 1.41 which had lower value than 1.96 which means null hypothesis is
rejected from the study and alternative hypothesis is accepted which means there is no
significance relation among the variables of the company and also there is no significance
relation among the net taking of the companies in the market.
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