Eco-Fone Smartphone Market Analysis and Kingston Expansion Plan

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

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Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
Task 2...............................................................................................................................................6
Task 3...............................................................................................................................................9
Task 4.............................................................................................................................................10
Task 5.............................................................................................................................................12
A. Computation of monthly installment of EMI for the Loan required for expansion............12
Task 6.............................................................................................................................................14
Testing the Possible Difference in Net Takings in the Two Shops...........................................14
Task 7.............................................................................................................................................16
Task 8.............................................................................................................................................17
Quality Procedures.....................................................................................................................17
Task 9.............................................................................................................................................18
Task 10...........................................................................................................................................20
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Introduction
In this report, it discusses the United Kingdom is having a great market of smartphones. Eco-
Fone is one of the businesses in the UK; it is selling smartphones with two branches. It discusses
the smartphones market of the UK, in the last five year the position of the smartphone as
compared to other electronics market. Discusses Kelion’s article and article on the older peoples
of the UK is using 71 percentage smartphones with their daily routine. The Eco-Fone is thinking
to open the new branch in the Kingstone it takes the pros and Cons from the market research to
get the best result of the business.
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Task 1
An Overview of the Mobile phone market in the UK
The smartphones are having a broad market with the maximum profit. In the United Kingdom,
smartphones are having a classified range of smartphones with effective features. In the last five
years, the smartphones are having the top one electronic device is using by the 18-25 with the 91
percentage (Deloitte, 2017). In 2014 the competition between the laptop and tablet, the laptop is
having a large scale of customers and after 2016 the smartphone became the highest range
market and customers. The tablet has also increased rapidly from 2012 to 2015.
[Source: Consultancy, 2017]
The survey is done by Deloitte in May to June 2017, as per the survey the smartphones are
having the largest number of customers. According to the ratio, the smartphones will be
increases to two percent as per compare to the last survey and the ratio of laptop and large tablet
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has been decreased. The smartphones are the most effective device to the customer because they
are upgrading with the customer needs for satisfying the market of the customer (Deloitte, 2017).
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Task 2
Forecasting the UK Adult Smartphone use
Year Smartphones
2012 52
2013 62
2014 70
2015 76
2016 81
2017 85
Linear equation
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2012 2013 2014 2015 2016 2017
0
10
20
30
40
50
60
70
80
90
Smartphones
Smartphones
As per the linear equation, the smartphones is having continuous increasing order in all the five
years. The linear equation is showing the percentage of public of the United Kingdom in all the
year. In the coming year, the ratio will be increased as per the satisfaction level of the customers.
Polynomial Trade line Method
Forecast data of smartphones as per the Deloitte report
Year Smartphones
2018 87
2019 88
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2018 2019
86.4
86.6
86.8
87
87.2
87.4
87.6
87.8
88
88.2
Smartphones
Smartphones
Polynomial (Smartphones)
The Polynomial trade line is the method to show the future result of the specific task or
organisation. The organisation is using the polynomial trade line to the show sufficient
information to understand the thing.
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Task 3
Smartphones - A potential market for older customers
As per the Kelion, the smartphone market as achieved the goal in the last five years. The market
has thought to achieve maximum customer and they got the success. The survey as on the 1163
peoples and they disclose the satisfaction level. In the United Kingdom, the maximum users of
smartphones are in the age group of 55-75 as compared to the younger peoples and the
percentage is 71 percent. The 55-75 age groupsare capable and they are buying the premium
handsets for getting the best service from the smartphone. In the smartphones, the most peoples
are like to do in the smartphone is doing the payment with the all the public, and they can book
the cab at any of the place (Kelion, 2017). The 20 percent of the peoples are seeing the
smartphones in there office or workplace of the people.
In the United Kingdom, there are many brands which are producing smartphones with the abject
problem of the customer in the market, they are doing research methodology. For the older age
group, they are moving to the relief for the work so they are doing the work with the smartphone.
In the survey, 70 percent of the public they are log on the Facebook app to communicating with
the friends and family (Kelion, 2017). Face authentication is the feature that unlocks the phone;
this feature is getting attractive to the public.
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Task 4
Feasibility of expanding the business to Kingston using Pros and Constable
Should we expand our business to Kingston?
Pros Score/10 Cons Score/10
Increased customer reach 10 Limited accessibility 8
Increased profit 9 Limited quality 7
Reduce competition 10 Loss of control 7
Increase resources 7 Increased capital requirement 5
New employees 7 Increased staff 6
Improve brand image 8 Increased pressure 7
Consumer awareness 9 More expenditure on infrastructure 6
Increased sales 10 More funds 6
Total pros 70 Total cons 52
Average pros 8.75 Average cons 6.5
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As in the above table is showing the figures of the Eco-Fone are thinking to open the new branch
and it gives the pros and cons of the Kingstone branch. In this figures the pros are having the
large difference in the cons, the pros are having the total of all aspects is 70 out of 80 and that
gives the proper the answer for the following terms in the market. In the pros, there is having the
maximum profit in the new branch, as per the pros and cons of the Kingstone the Eco-Fone has
to open the new branch in the Kings tone for marinating or earing a large number of the profit.
Kingstone branch will increase the customer reach and they will gate the different sale in this
branch. In the Kingstone branch they get the maximum problem on accessibility, the
organisation has to solve the problem to get a good result among the Kingstone shop.
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Task 5
Costs of a New Building
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
The monthly instalment payment is showing the payment every month to complete the
whole payment. It gives the judgment to the company(Business today, 2013).
B. different commercial mortgage lender in the United Kingdom
 TSB Bank
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