Eco-Fone Smartphone Market Analysis and Expansion Feasibility Report

Desklib provides past papers and solved assignments. This report analyzes Eco-Fone's potential UK market expansion.

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

Table of Contents
Introduction...................................................................................................................................1
1. Analysis of Issues for Eco-Fone Smartphones......................................................................2
1.1 An Overview of the Mobile phone market in the UK........................................................2
1.2 Forecasting the UK Adult Smartphone use........................................................................4
1.3 Smartphones - A potential market for older customers......................................................6
1.4. Feasibility of Expanding business to Kingston using Pros and Cons table.......................7
1.5. Costs of a New Building....................................................................................................8
1.6. Testing the Possible Difference in Net Takings in the Two Shops.................................11
1.7. Customer Satisfaction......................................................................................................12
1.8 Quality Procedures (200) SD............................................................................................14
1.9 Conclusions &Important Findings....................................................................................15
2. References...........................................................................................................................16
3. Appendices..........................................................................................................................18

Report for Eco-Fone 2019
Introduction
The report will analyse data on behalf of Eco-Fone for expansion of the company into a new
country. Eco-Fone is a Smartphones company that wants to expand its market to UK. Now this
report will be written to analyse Smartphones market in UK and pros and cons of expansion of
the company into a new market. Different data related to Smartphones market will be analysed
and a conclusion will be written on whether the company should expand its market or not. The
costing of company into a new market will be explained and it will help to understand the trend
of Smartphones in the market from last few years. Sales and popularity of Smartphones are
increasing in every country including UK. Market of Smartphones has highly flourished in last
few years. Detailed data analysis on it will help to understand market in more effective way.
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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
Mobile phone market has been flourished in UK from last few years. Some data of
Smartphones market of UK will help to explain the market of Smartphones better. Currently
85% people of UK are using Smartphones. Deloitte research states that the number of users
will be increased from 84% to 90% by 2020 (Deloitte.co.uk, 2019). Different interesting
features of Smartphones have increased the sales of Smartphones in UK. According to report
of Deloitte, current sales of Smartphones in UK have been increased to 1.5 million annually.
Amount of Smartphones sales in the country is 4 million per day.
High connectivity is another added advantage that has helped it to increase the sales. Recently
the connectivity has been increased to gigabyte. The news states that near about 11% young
people use their phones at the time of crossing roads and more than half of the popularity uses
Smartphones while walking. Duration of sleeping is being reduced among the people of age
16-79 years old (Deloitte.co.uk, 2019). Insomnia is increasing and different reasons are
being prominent for high use of mobile phones. Most of the use of Smartphones is done among
the age group of 16-79 years old. Nowadays Smartphones is being popular among the elderly
people also. It is expected that Smartphones will come with different new benefits for people
and the use of Smartphones will increase. A graph of the most used applications of
Smartphones will be given below:
Activities 2016 2017
Email 41% 44%
Making Voice calls 33% 34%
Calendar management 3% 23%
Documents viewing 17% 0%
Table 1: Top activities of working people in UK
(Source: Deloitte.co.uk., 2017)
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Report for Eco-Fone 2019
Email
Making Voice calls
Calender management
Documents viewing
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
41%
33%
3%
17%
44%
34%
23%
0%
Smartphone Activities of Working People
2017
2016
Figure 1: Graphical representation of top four activities of working people in UK
(Source: Created by the learner)
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Report for Eco-Fone 2019
1.2 Forecasting the UK Adult Smartphone use
The Deloitte report states that near about 88% adults of the country hold Smartphones. It will
be increased highly in near future. Amount of old customers from age group of 55-75 years
have increased by 7% (Deloitte.co.uk, 2019). Detailed data will be given of the adult users
of phone in the country and analysing those data will help to understand the amount adult
Smartphones users in the country.
Devices 2012 2013 2014 2015 2016 2017
Smartphones 52% 62% 70% 76% 81% 85%
Table 2: Usage rate of Smartphones in UK
(Source: Deloitte.co.uk. 2017)
2012 2013 2014 2015 2016 2017
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Smartphones
Smartphones
Figure 2: Graphical representation of rate of using devices among the adults in UK
(Source: Deloitte.co.uk. 2017)
Depending on previous data, forecasting can be done for upcoming two years. Linear method
of forecasting will be used here.
Devices 2018 2019
Smartphones 94% 100%
Table 3: Forecasting table of the Smartphones usage in UK
(Source: Deloitte.co.uk. 2017)
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Report for Eco-Fone 2019
2018 2019
0
0.2
0.4
0.6
0.8
1
1.2
80%
100%
94%
Forecasting Table
Devices
2019
Figure 3: Graphical representation of forecasting rate of Smartphones usage in UK
(Source: Deloitte.co.uk. 2017)
Linear forecasting has been used but it is not much applicable for all cases. Accuracy of linear
forecasting method is low and it is the key disadvantage of this method. Forecasting can be
done by applying some other methods for high accuracy of forecasting.
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Report for Eco-Fone 2019
1.3 Smartphones - A potential market for older customers
Smartphones have gotten a huge popularity within elderly people. Some features of
Smartphones are more popular within the older people. Some of the key features of
Smartphones that make it more attractive to the elderly people are its bigger screens and louder
speakers (BBC News, 2019). Generally, the elderly people have poor eyesight and bigger
screen and louder speakers help those people to see the pictures more clearly. Face lock feature
of Smartphones have made unlocking and using Smartphones easier to them. High connectivity
and easy use of the Facebook is another reason of using Smartphones.
The elderly people generally value more the gifts and the family. A research of BBC (2019)
states that a high number of elderly people of the country have been gifted with the
Smartphones. These are the key features of the Smartphones that have made the use of
Smartphones more popular to the elderly people.
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Report for Eco-Fone 2019
1.4. Feasibility of Expanding business to Kingston using Pros and Cons table
Should we expand our business to Kingston?
Pros Score/10 Cons Score/10
Boost in the Revenue potential of
tge 9 Operational Improvement 9
Base of New Customers 9 Losing the main customers 5
Learning the culture of new
business 8 Conduct of foreign trade 9
Communication 7 Time Zones to be different 6
Market Diversification 8 Evaluation in the currency to
rise 7
Expansion of the cost 9 Interference in the politics 9
New Talent Acquisition 7 Investment from foreign areas 8
Total Pros 57 Total Cons 53
Average Pros 8.1 Average Cons 7.6
Table 1: Feasibility Table of Eco-Fone
(Source: Created by the Learner)
The table above provides a data of the pros and the cons of the feasibility of the expansion of
business of the company Eco-Fone in Kingston. It is observed that there are different areas that
act as positive notes for the company, while, there are different areas where there are negative
notes for the company. The average positive score of the company expanding their business in
Kingston is 8.1, while the negative score of the company expanding their business in Kingston
is 7.6. This suggests that Eco-Fone can expand their business in Kingston and they should
expand the business of mobile phones there.
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Report for Eco-Fone 2019
1.5. Costs of a New Building
Since, the company Eco-Fone is expanding their business in Kingston, there is a necessity for
the company to take loans from the market so that they can expand their business. For this, the
amount of loan that was fixed was £ 350,000. Depending on the loan amount, it is necessary
for the company to check for the amount that they need to pay monthly. There is a calculation
that has to be performed that will be provided below.
Input Variables
Loan Amount £
350,000.00
Annual Interest Rate 7.0%
Mortgage Period in Years 15
Additional Monthly Mortgage Repayment -
Annual Interest Rate Sensitivity 0.0%
Average Annual Inflation Rate 1.8%
Table 5: Loan amount table
(Source: Created by the learner)
Calculation Formulae Results
Monthly Mortgage Repayment =
PMT(rate,nper,pv,fv,t
ype)
3,
145.90
Total Interest over Mortgage Period =C12-C2 125
,053.16
Total Mortgage Repayment over
Mortgage Period
=C10*12*C4 566
,261.81
Table 6: Repayment amount table
(Source: Created by the learner)
b. Provide the logos of the eight companies that provide mortgages in UK.
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Report for Eco-Fone 2019
Companies Logos
Lloyds
Santander
Nationwide
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Report for Eco-Fone 2019
Barclays
Royal Bank of Scotland (RBS)
HSBC
Halifax
10