Analyzing Ecofone's Customer Base and Future Growth

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ECOFONE 2019
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Introduction
The report is based on the Ecofone Company that sells smart phones and mobile accessories across
the UK. It has two shops, one in Putney and other in Richmond. Business is doing well since 2014
when it set up the shops. They are gaining high net profit since it starts the business. Recently it
noticed several trends among the customers. One trend is the increased sales of older customers;
another is the possible difference in net takings from the shops. The data collected as per the market
value are comprised of the sales of feature phone as well as smart phones to the UK’s customers
and depends entirely on the retail selling price of the smart phone instead of the money paid by
customers on the post-payment proposals.
Analysis of Issues for Eco-Fone Smartphones
An Overview of the Mobile phone market in the UK
The report discusses about the smart phone usage in through the UK consumer market. Mobile
phones are explained as the devices utilised for placing or receiving calls through the connection of
the mobile network. For describing non-smart phones, two terms used are Feature Phones and basic
mobile phones. Smart phones are explained as a portable computer that is able to make calls, send
and receive data either through a mobile network or through Wi-Fi network, downloads, installs and
runs applications from an application store (Wilhelm et al., 2015). Phablets are the type of smart
phones having a screen size of 5 inches or more.
The data related to the market value included in the report consists of the sales of feature phone as
well as smart phones to the UK’s customers and depends on the entire retail selling price of smart
phone instead of the money paid by customers on the post-payment proposals. According to Zach
Emmanuel, a leading analyst in the Technology sector, extensive knowledge gained by him delivers
in-depth commentary and analysis for highlighting the current trends and add expert context to the
numbers.
According to consumers, the latest smart phones exceeded the price range, and so they are less
interested in upgrading the devices because of this reason. Manufacturers aim in offering better
innovation and more value for the amount paid, by improved cameras as well as punch-hole
displays. They would bring 5G enabled devices for boosting the market. According to
eMarketer.com, the web traffic related to mobile was more as compared to desktop traffic across the
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UK (Majeed-Ariss et al., 2015). They also predicted that in upcoming years, adults in the UK would
spend more time on smart phones.
Forecasting the UK Adult Smartphone use
The use of a Smartphone in the UK is increasing over the use of laptop. Around 85% of citizens use
a Smartphone while 78% is seen using a laptop. Smart phones provide hyper-mobility, and
according to purchasing intent, high-frequency Smartphone users are acquiring a latest or pre-used
device. Electronic computing, as well as related devices, are becoming popular where the variety of
such devices are seen expanding over recent years. According to Deloitte, the service organizations
look at up taking each device, acquisition interest and relative use among almost 4000 UK
respondents. The statistics show a forecast of the development in the number of Smartphone users.
Since Smartphone manufacturers are seen continuing with the implementation of innovative
features, the utilization of the features is also rising (Berenguer et al., 2016). By the year 2016, 12%
of users were found to use a voice assistant in the UK, while among the rest, 21% were utilizing the
fingerprint verification method for logging into the devices. The major factor considered during
decision making related to the purchase of a new Smartphone is price.
Smartphones- A potential market for older customers
According to study, older people have become more tech savvy since the Smartphone sales are
influencing the older customers across the U.K. There are various modern technologies for the elder
people who are seen using this, and it is observed that the Smartphone sales are influencing over
55s. According to Deloitte’s research, it is revealed that around 71% of over 55years old at present
own an application-capable smart phone. Since the past few years, the research found that the older
age group are adapting to a faster rate as compared to others. The research finds that though 55s are
purchasing smart phones, the age group are not utilizing the devices regularly like the younger
people (Chauvet et al., 2019). 20% of older people check the notifications in the phones every 15
minutes, although the average at the national level is 56%. The survey performed among 1163
people, highlighted that around 50% of older people installed Facebook among 70% of adults.
The research suggested that some older people felt the need of purchasing a Smartphone. According
to Deloitte, an increasing number of parking meters are capable of encouraging payment through
mobile phone, as the Smartphone app offers the greatest convenience. It can become tough for
ordering a taxi without utilizing the app. Latest Ecofone smart phones are quite suitable for older
persons since the big screens are helping persons with poor eyesights to read something on the
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phone. The loudness of speakers is helping the persons having poor hearing capabilities (Mugge,
Jockin and Bocken, 2017). Latest smart phones are becoming easier to use since the android
manufacturers are offering streamlined versions of the applications specifically for older people.
Feasibility of expanding the business to Kingston using Pros and Cons
Advancements in technology are influencing the business expansion to Kingston. Expansion of
business deals with the payment of inventory, more space and people in various instances. It also
states the potentiality of increased profits and revenue. Businesses tend to have larger growth
naturally (Soboleva, Golaydo and Ligina, 2015). There are various advantages related to the
expansion of smart phone business.
Attracting new customers: The fundamental advantage of business expansion deals with the ability
to attract and retain new customers. While adding new products or moving into new markets,
Ecofone can bring the previously untapped customer markets. Reaching new customers with the
expansion is a thing, and capturing them for building a long-term relationship is primary.
Economies of scale: Expansion of business involves the business risks and decreases the potential
of a product or the poor decision that damages the business. Operating the business in multiple
markets allows Ecofone in spreading the cost of doing business through the markets.
Expansion of business also includes various disadvantages
Capital requirements: A disadvantage of business expansion is the Ecofone’s investment and
another resource. Ecofone has comparatively less capital for several other transactions that makes it
important for weighing the market potential before the investment.
Spreading the resources: Another risk of business expansion is spreading the resource of Ecofone
and expertise. The organizational leaders plan for expanding things in case it goes well. Involving
in too many markets can affect organisational abilities.
Costs of a New Building
With a plethora of Smart phones that are available in the UK market, the customers can get a good
device from Ecofone. Consumers always have a tendency of getting the best from the money. They
want to get information about whether the manufacturers make huge profits from the products.
Therefore, Ecofone checks the production cost of all the top-selling smartphone brands, which helps
them in their decision. The production cost depends on the specs analysis, supplier information, and
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teardown of devices. The most costly parts are usually the memory, display, core electronics, and
camera. Ecofone does not consider other costs like distribution, marketing, packaging, R&D,
software, and staffs for restricting the manufacturers in earning profit from the smart phone.
Testing the Possible Difference in Net Takings in Two Shops
In case a snapshot is taken for the shopping experience, it would be find that customers look for
ideas and inspirations, a shopper can browse a catalogue, walk through the store aisles. A shopper
can learn more regarding a product and head to the cashier. The shopper interacts independently
with the channels. There is a difference in the current market, where shoppers are usually omni-
channel. They collect ideas, look at the information and create decisions. There are differences in
net takings in two shops since the customers can use smart phones before heading to store for
gathering ideas, researching products and then focus on local information. Research is not the only
way by which a smart phone changes its shopping experience. Shopper purchases smart phones
from shops, but there are chances for online shopping too. The retailers check the opportunities for
attracting shoppers in the mobile-fueled shopping landscape.
Customer Satisfaction
Customer satisfaction is an important factor for Ecofone since they have a tendency of giving a big
advantage. Consumers are formed by the expectations that refer to the performance of a product or
the product quality. Customer satisfaction emphasises the degree at which customers feel happy
with the utilization of products provided to them by Ecofone. For maintaining customer satisfaction,
Ecofone must keep in mind the requirements and offers them outstanding products as well as
services (Yang and Shim, 2018). Ecofone can shift to the upper level by gaining customer
satisfaction in a competitive market. Customers create their expectation and perception regarding
the brand positively by means of the word, promotional activities and selling activities according to
the market strategies. It seems like there is a possibility of spreading bad words, in case a customer
experiences dissatisfaction 0on the consumer product rather smart phone. Customer satisfaction is
an important indicator for better marketing practices as customer satisfaction helps Ecofone in
achieving future success. Customer satisfaction also drives financial performance. Satisfaction
increases customers’ loyalty, cross-buying, and reduces price elasticity (Lee et al., 2017).
Customers are capable of obtaining satisfaction from the entire product, product performance,
company representatives, various transactions such as complaint handling, product delivery, sales
presentation generated by Ecofone with customers.
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Quality Procedures
The first smart phone was launched 20 years ago. The size of the mobile phone was too big.
Ecofone equipped a touch screen of 4.5 inches, which has the special feature of stylus writing, like
the 2GB of RAM, 16GB of hard drive and high processor speed in today’s smart phones. However,
there is a difference in the operating system. At present, Android is dominating the smart phone
market as the operating system is widely used in smart phones. In the current technological era,
Ecofone smart phone is not just becoming popular but also provides customers with a possibility
series across all fields like information exchange, entertainment, and mobile working (Okamoto,
Yatsuhashi and Mizutani, 2017). Smart phones were not much distinguishable as compared to the
normal phone until iphone came. Hence, ranges of smart phone devices from various manufacturers
like Ecofone’s smart phones are created for competing with iphone. The Ecofone’s smart phones
differ in the hardware, software, price, design and operating system.
Conclusion & Important Findings
Smart phone sold by Ecofone is not just becoming popular but also provides customers with a
possibility series across all fields like the information exchange, entertainment, and mobile
working. The Ecofone’s smart phones differ in the hardware, software, price, design and operating
system. Consumers always have a tendency of getting the best from the money. They want to get
information about whether the manufacturers make huge profits from the products. Therefore,
Ecofone checks the production cost of all the top-selling smart phone brands, which helps them in
their decision. The production cost depends on the specs analysis, supplier information, and
teardown of devices. The most costly parts are usually the memory, display, core electronics, and
camera. Ecofone does not consider other costs like distribution, marketing, packaging, R&D,
software, and staffs for restricting the manufacturers in earning profit from the smart phone.
Customer satisfaction is an important factor for Ecofone. Customer satisfaction emphasises the
degree at which customers feel happy with the utilization of products provided to them by Ecofone.
For maintaining customer satisfaction, Ecofone must keep in mind the requirements and offers them
outstanding products as well as services. Ecofone improves its business by gaining customer
satisfaction in a competitive market.
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References
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