Ecofone Report: UK Mobile Phone Market and Business Strategy

This report provides a comprehensive analysis of the UK mobile phone market, focusing on the business operations of Ecofone. It begins with an overview of the market, highlighting the increasing smartphone usage and its impact on sales. The report then forecasts future mobile phone usage among adults in the UK, supported by statistical data and analysis of different age groups. The report further explores smartphone usage among older people, including their preferences and adoption rates. A key aspect of the report is the evaluation of Ecofone's potential expansion into Kingston, using a pros and cons table to assess the advantages and disadvantages. The report also includes financial considerations, such as mortgage loan details for a new building, and provides a list of commercial mortgage lenders. The report concludes with advice for Ecofone on meeting quality procedures and a questionnaire for customer satisfaction, offering valuable insights for the company's strategic decision-making.

ECOFONE SUMMATIVE
ASSESSMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Overview of mobile phone market in UK..............................................................................3
TASK 2............................................................................................................................................4
Forecasting the use of mobile phones among the adults in UK.............................................4
TASK 3............................................................................................................................................5
Smartphones usage in the older people..................................................................................5
TASK 4............................................................................................................................................6
Pros and cons method table for expanding to Kingston.........................................................6
TASK 5............................................................................................................................................7
Pros and cons table.................................................................................................................7
TASK 6..........................................................................................................................................10
Possible Difference in Net Takings of the Two Shops of Ecofone......................................10
TASK 7..........................................................................................................................................11
Questionnaire for satisfaction of customers.........................................................................11
TASK 8..........................................................................................................................................13
Advice to Ecofone for meeting the quality procedures........................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
APPENDICES...............................................................................................................................15

INTRODUCTION
Technology is the lifeline of people in 21st century. Without it, people find it difficult to
survive and perform their work. Mobile phones are also developed due to the advancement in
technology which is mostly used by the people for communication and entertainment purpose.
People uses their phones for connecting with people, listening songs, watching videos etc. The
taken business firm in this assessment is the EcoFone who is providing a wide range of mobiles
of different brands from their outlets located in Putney and Richmond (Products of Ecofone,
2019). This assessment will cover the overview of the mobile phone market in the UK along
with the forecasting of mobile phone usage in UK. Further the popularity of smart phones along
with the monthly cost of a 15-year repayment mortgage and logos of well-known commercial
mortgage lenders will be discussed in this report. In the end, this report will advice the Ecofone
for meeting the quality procedures.
TASK 1
Overview of mobile phone market in UK
The smart phones were invented around two decades ago and since then it becomes
integral to human life. It has becomes more flexible in terms of versatility and perform function
from navigation to communication, from news to sharing the memories. Based in the survey
which is conducted by the Deloitte on the topic of using mobile phones in the UK market, it can
be said that the use of mobile phones is increasing at a rapid pace which is positively impacting
the sales. The sales of mobile phones in UK has increased by 1.5 billion on a yearly basis.
Around 58% of the adults in UK are using the mobile phones and it is estimated that this usage
of smartphone in UK will reach 90% by the year 2020. This increase is estimated as the people
are attracting towards the mobile phones at a huge extent due to the benefits. These mobile
phones are useful for the people in their day to day life. Through these phones, people can spent
their free time for entertainment purpose and for socialising with the people (Smartphone sales
boom with over-55s, 2019).
People can use the smart phones also at their jobs which is evident from the survey of
Deloitte as out of 33 millions people who are working, 32 millions job professionals are using
the mobile phone for their job purposes. Smartphones are used by job professionals for E-mail,
messaging, voice calling, calendar management and so on. Even the HR managers of the

business firms are also using the phones for contacting the candidates who are in need of job.
Apart from that, old age people are also using the phones in their daily life for connecting with
the family members and for listening the devotional songs.
Calls
Documents
Email
Managing time
0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45
32.00%
17.00%
41.00%
8.00%
32.00%
0.00%
37.00%
6.00%
2016
2017
TASK 2
Forecasting the use of mobile phones among the adults in UK
The mobile phones usage will increase in the upcoming years at a fast pace. This is
because the mobile phones in present decade are equipped with features such as 4G connectivity
for fast internet and better calling, online video calling to relatives and friends, music
applications with thousands of music tracks, navigation for reaching any where, on voice
command etc. which has the potential to ease the daily activities of individuals. By 2022, 90-
95% people of UK will use the mobiles for their various purposes. According to the survey
conducted by the Deloitte, it has been seen that the 56% of the people between the age group of
16 to 24 are checking their phones in every 20 minutes which is almost 200 times a day. Also
55% people between the age groups 25-34 years are addicted to the mobiles and uses the mobile
even while eating or taking with other people. Also 47% people between the age group 35-44
year are using the phones daily or every hour (Products of Ecofone, 2019). 30% people between
the age group 45-54 years uses their mobiles when crossing the roads or walking on the road. So

it can be said that the people between the age groups of 16 to 24 are using the mobiles phones
more than the other age groups.
Linear chart is not suitable for this case as due to plotting too many bars makes, the chart
become sdifficult to interpret. The chart also becomes more complicated if there are uneven class
intervals. The use of too many or too few classes can mask important patterns in the data. Due to
these issues, bar chart is suitable for the data given above.
TASK 3
Smartphones usage in the older people
According to the Leo kelion, 2017 Sales of the smartphone are increasing among the
older people of UK. Around 71% of people between the age groups 55-75 year owns mobile
phones which are capable of installing applications (Smartphone sales boom with over-55s,
2019). In the recent years, these people adopted the mobile phones at a fast rate but also these
people uses the mobile phones less than the youth. Around 50% of the old people of UK has
installed the Facebook in their phones as compared to the adults in which 70% installed the
Facebook in the phones. As suggested by the Deloitte, 55-75 year old people having average
wealth purchases the premium smart phones. Whereas some of the these people started keeping

phones when handed over from their children. The world is changing and the mobile phones are
must in this time due to the dependence on the online payments. For example, parking meters are
encouraging the payment through mobile phones which is the greatest convenience of using
these phones (Abi Ghanem and Mander, 2014). Also mobile phones are required for booking a
cab or taxi online through the application of cab services. The smart phones in present and
upcoming time will have the bigger screens along with the loud speakers which is a good thing
for the older people. This is because older people usually have weak eyes and ears due to which
these faces problem in slow voice and small screens. Also facial recognition is a new factors
which provides the ease to older people in unlocking the phone just be looking towards the
screen (Thomas and Bond, 2014).
TASK 4
Pros and cons method table for expanding to Kingston
The Pros and cons table for the Ecofone for expanding the business operations in
Kingston is given below:
Should we expand
business
Yes, expanding business in the Kingston market is advantageous
for the EcoFone company so that the business can be expanded
across the borders.
Pros Score/10 Cons Score/10
When company will
expand their business
operations and activities in
the Kingston marketplace,
then it will results in
higher customer base and
increased sales of the
mobiles phones.
7 While expanding the
business operations in the
Kingston market, Ecofone
needs to arrange huge
amount of capital or funds
so that the required
technology and machinery
can be purchased for
smoothly running the
business operations in new
market.
6
When the company will
expand in new market i.e.
Kingston, the brand image
and recognition of the
company will improve
which will also assist the
8 While expanding the
business operations and
functions in Kingston
market, Ecofone needs to
consider the regulations
and laws of the
7

firm in enhancing the
chances of expanding to
the other areas and
markets.
government. Also the
company needs to handle
the customers of new
culture.
By expanding the business
operations in new market
i.e. Kingston market place,
company can avail the
opportunities which are
present in Kingston such
as people from different
culture and background.
The company can hire the
new and innovative
employees for their outlet
from the respective
country.
6 During the expansion in
the Kingston, Ecofone can
face the issues associated
with the culture and
language as the firm is new
in this market and needs
time to understand the
culture and language.
7
The profit and revenue of
the company can improve
by expanding the
operations of business in
Kingston which is also
beneficial for the firm in
sustaining in the market.
8 The company can face the
competition from the
locally established firms of
Kingston which will
directly affect the
productivity and
profitability of the
company in new market.
7
Total Pros 29/40 Total Cons 27/40
Average Pros 0.72 Average Cons 0.67
TASK 5
Pros and cons table
Ecofone is expanding their business to the Kingston market and for this the company
needs improved facilities new premises etc. in central Kingston. The new building is available
for lease or sale but Ecofone already has two shops due to which company does not needs to
lease the building (Bagga, Noseworthy and Dawar, 2016). The price of the new building is
£400,000 but by negotiation, price reached to £350,000. The cost on the repayment mortgage of
£350,000 for 15 years with an interest rate of 7% per annum is given below:
Loan Amount £350000

Number of EMIs 180
Annual Interest Rate 0.07
Monthly Interest Rate 0.00583
Monthly EMI Payment £3145.90
Total Loan Amount Payable £566261.81
Total Interest Payable £216261.81
Mortgage loan refers to the advance paid amount of money and debt which is provided
by the banks to the organisations which is paid on undertaking the property of loan taker. Such
type of loans are taken by the organisations for purchasing the home, land and property etc. Also
this is very secure as the bank can cease the property which is given the loan taker if the amount
is not paid on time (Smart, 2012). Various elements are included in the mortgage loan like
principal amount, interest, tax and insurance etc. There are a large number of companies in the
UK who are providing mortgage loans to the organisation. Some of these are discussed below:
Yorkshire Bank, Mortgage Loan services
Godiva Mortgage Loan providers

Bank of Ireland
THINK Business Loans Commercial Mortgages
B2B Finance.Com Commercial mortgages
NatWest Commercial Mortgages

Royal bank of Scotland Commercial Mortgages
HSBC – UK Mortgage Lenders
TASK 6
Possible Difference in Net Takings of the Two Shops of Ecofone
Ecofone is a mobile selling company who provides the mobiles phones to the customers
of different brands such as Apple, Samsung, Huawei, etc. The company is providing the mobiles
phones and accessories on discounted prices from their two shops located at Putney and
Richmond (Lee, 2013). One shop has generated mean profit of 100 Euro and other shop has the
mean profit of 90 Euro. Both of the outlets had taken the sample of 40 net daily takings having
standard deviation of £20 and £40 respectively. So it can said from the above data that the first
shop has the high profit then the second shop. Because with increase of sample size and mean,
variability is expected to be reduced. First shop has taken the sample of 40 and mean profit of
£100 along with the standard variation of £20. While, another shop on same sample size has got
less mean but high variability. Hence, both of the shops hasn't took the same net takings or net
profitability in terms of reliability and validity. So the second shop needs to redesign their

strategies for providing the products on the discounted rates. Through this, both of the shops can
take the same net takings along with the variability (Choudrie and et. al., 2014).
TASK 7
Questionnaire for satisfaction of customers
1. What was the last time when you buy the product from the outlet of Ecofone?
 last month
 Between 1 month and 3 months (√)
 Between 3 and 6 months
 Between 6 months and 1 year
 Never
2. From how long, you are using the products of Ecofone?
 Fewer than 6 months
 Between 6 months and 1 year
 Between 2 and 3 years (√)
 Between 3 and 5 years
 More than 5 years
 Never
3. Please rate us on the following: (Please tick one: excellent=4, Good=3, Fair=2,poor=1)
Basis 4 3 2 1
Customer service/support (√)
Quality of products/services (√)
Sales staff (√)
Price/value (√)
4. How would you state the satisfaction from the products of Ecofone?
 Very satisfied
 Satisfied

 Neutral (√)
 Dissatisfied
 Very dissatisfied
5. How likely you will continue to do business with the Ecofone?
 Very likely (√)
 Likely
 Neutral
 Unlikely
 Very Unlikely
6. How likely will you recommend the products/services of Ecofone to others?
 Very likely (√)
 Likely
 Neutral
 Unlikely
 Very Unlikely
7. Please provide your suggestions for improving the products and services for serving the
customers effectively.
Interpretation: From the above questionnaire, it can be seen that the management has
asked several questions from the respondent for improving their products and services. The
interpretation of these questions is given below:
Q1: When asked about the last time respondent purchase the product of company, the answer
was between 1 month and 3 months.
Q2: The respondent stated that the products of the company was used by him from last 2-3
years.
Q3: Several things are asked by the respondent such as customer services (good), quality of
products (excellent), sales staff (fair), price or value (good). This represent the experience of
consumers from the purchasing of products.
Q4: Respondent stated that his reaction is neutral in terms of satisfaction from the products of