Eco-Fone's Market Expansion Strategy: A Comprehensive Analysis

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Summative Assessment
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Table of Contents
Introduction:....................................................................................................................................3
Task 1...............................................................................................................................................4
Task 2...............................................................................................................................................6
Task 3...............................................................................................................................................8
Task 4...............................................................................................................................................9
Task 5.............................................................................................................................................11
Task 6:...........................................................................................................................................12
Task 7:...........................................................................................................................................14
Task 8:...........................................................................................................................................17
Task 9:...........................................................................................................................................19
Task 10:.........................................................................................................................................20
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Introduction:
Eco-fone is a mobile manufacturing company which provides its products in two different cities
of the United Kingdom. In this scenario, they want the evaluate market positioning of the
company and identified market need with relevant of their product in the market. As the
company evaluate and analysis a market survey conducted by Deloitte for the smartphone market
in the United Kingdom and also evaluate the future trend of the smartphone market in the United
Kingdom. The company needs to evaluate future opportunity of their product for they conducted
various analysis which helps them to identify their targeted market and help inadequate decision
making for expansion. As the company expands its business they evaluate the market and
understand the pros and cons which influence the performance of the company. Further, in this
task, various financial analyses conducted to identify the proper source of financial and analysis
annual cost of financial option which the company wants to adopt. Various statically tools are
used to evaluate customer feedback and net taking from different location of the business for the
company. This all statically tools are used by management for a better understanding of the
market and their future influence on the process of the company which helps management of
eco-fone in better decision making.
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Task 1
The United Kingdom is a market which has a complex factor as information has free flow in the
market and also customer is aware of the market. Eco-fone wants to expand their business for
better growth in the competitive market in which helps them in better growth in the competition
market (Deloitte, 2017). As the market is vibrant and complex company need to analysis the
market which identified the future path for Smartphone Company. According to the report of
Deloitte overall 32 million are the employee who used a smartphone in their daily routine life. It
seems like a major market for a smartphone in the United Kingdom.
As the above graph discussed the current scenario of consumer behavior of the United Kingdom
for smartphones which identified that mostly employee or consumer of smartphone uses their
phone for availing of Emails and call facilities of smartphones in the United Kingdom.
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Additional facilities of viewing the electronic document in a smartphone are approx. one-sixth of
the total usage of smartphone which does not exist in 2016. This kind of activities defines the
usage of the smartphone is increased as the new feature like video calling and Pdf viewer is
introduced for consumers (Deloitte, 2017). Although majorly employee of United Kingdom
utilized smartphones for their personal perspective which is not defined under the report of
Deloitte.
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Task 2
6
2011 2012 2013 2014 2015 2016 2017 2018
0
10
20
30
40
50
60
70
80
90
Percentage Smartphones
Percentage Smartphones
Polynomial (Percentage
Smartphones)
Years of Usage
Smartphones
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

Linear Equation is a statistical tool which evaluates the relation of the independent variable for a
better understanding of the future influence of variable. As Eco-Fone concern about their future
demand of smartphone in the market, Linear Equation can be a tool which provides an adequate
path to understand the opportunity in the market in near future and also defines the future path of
smartphone industry in the United Kingdom.
As the linear analysis conducted on data from Deloitte report which provides a positive market
growth of smartphone in the United Kingdom (Deloitte, 2017). As Smartphones usage among
the consumer of the United Kingdom had a steady growth provide management an adequate
growth rate of the market which helps them in strategic decision making for the growth
perspective of the company. Market defines a steady growth which identified new opportunity
for Eco-fone to an identified a new market and establishes its market segment for operational
activities.
It can good tools to evaluate relationships among the variable but it had certain limitation it not
identified relation among other gadgets exist in the market which not provides a justified path for
expansion strategy for the company (Deloitte, 2017). Management can use regression and
correlation tool and technique which identified relation among laptop, smartphone, and tablets
and provide a proper market scenario for a smartphone manufacturer.
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Task 3
In recent year older age consumer is more attract toward smartphone which is a positive sign for
eco-fone as it can provide them a new market segment for their operation. According to the
news, the United Kingdom had a place where older age people more attract toward smartphones
as it is a device which provides mobility and comfortability to the user. Around 14 Million users
of the smartphone are belong to old age in united kingdom so Eco-fone can developed policies
which relevant to old age consumer and enable ease of doing their routine life activities (BBC,
2017). Smartphones come with a new feature which provides better connectivity with their
known one and also provides large screen display which is easy to use for old age people.
Further voice assistant and social application provide easy way for connection to old age
consumer so that they can connect to their family no matter where they live (BBC, 2017). As the
stats talk around 71% of a new customer for smartphones is old age which provides an
opportunity to eco-fone management as they can develop a new strategy to capture old age
consumer based which provide competitive advancement in the market.
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Task 4
Should we expand our business to Kingston?
Pros Score/10 Cons Score/10
Customer
Enrichment
8 Trigger Forces 9
Growth in margin 9 Limited Financial
Sources
8
Brand Building 8 An additional cost of
Employee
9
Employability
strength
7 Leverage of Control 7
Revenue Generation 10 Implementations in
the new market
6
Market Share 9 Additional cost for an
outlay of the project
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Source identification 7 Market competitions 10
Total pros 58 Total cons 68
Average pros 8.28 Average cons 8.00
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Strategic decision-making needs adequate environment analysis for the market which can help
them to implement a proper strategic plan which helps management in growth perspective. The
company needs to understand each and every prospect of a strategic decision. A balanced
scorecard can help- management to evaluates the pros and cons of expansion decision as it can
influence various factor and also influenced by various factor exist in the environment. Each
market has its own group of trigger forces who are the mix of various external factors that need
to understand by management before expansion in the new market.
Expansion needs proper financial and another resource which helps management to
manufactured products for a new market segment and also many of risk concern with control in
management or also trigger forces of the market which can demonstrate the performance of the
company. The expansion also had a positive perspective in which they can expand their brand
image and build market share in a competitive market which provides better growth in the
market and also help them to earn an adequate margin.
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Task 5
A. Computation of monthly installment 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.
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Leeds Building
Society
OneSaving bankNottingham
Building Society
Paragon Mortgages
TSB Bank
UBS Skipton Building
Society
Bank of Ireland

Task 6:
Z-test:
Z-test is a hypothesis test which is used to identify relationships among the means of two
different sample sizes. It is a part of the normal distribution in which Z-statics are followed to
analyze the samples. In this method difference among two different means is identified and
determination result which reflects the degree of relation among two sample size. Eco-fone
operated in two different locations in which they operated their business activities [Minitab,
2019]. For the perspective of market research by the management of Eco-fone need to identified
relation among the net takings of their shops which helps them in drafting and implementation of
the strategic decision.
For the purpose of Finding result from market survey Hypothesis is designed to the analysis of
Z-test on given data as follows –
 Null Hypothesis – the Net taking of shops are not the same – H0 – 0.05> H0<0.05.
 Alternative Hypothesis – Net taking From Shops are same for Eco-fone – H1 – 0.05<
H1>0.05.
Information’s Available
Particular Amount
Size of sample 40 40
Deviations (Standard) £20 £40
Mean £100 £90
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