ECOFONE: UK Smartphone Market Analysis, Expansion and Customer Report

This report, prepared for ECOFONE, a UK-based smartphone and accessories company, analyzes the UK smartphone market, customer satisfaction, and potential business expansion opportunities. The report begins with an introduction to smartphones and ECOFONE's business, followed by an overview of the UK smartphone market, including sales trends and user demographics. It forecasts smartphone usage among UK adults and identifies features popular with older customers. The report then uses a pros and cons method to evaluate the feasibility of expanding operations to Kingston, discusses the costs associated with developing a new building, and identifies commercial mortgage lenders in the UK. It also analyzes the difference in net banking between two shops and assesses customer satisfaction through a survey. The report concludes with a summary of findings and recommendations for ECOFONE's future business strategies.

REPORT FOR ECO-
FONE

Table of Contents
INTRODUCTION..........................................................................................................................3
TASK 1 ...........................................................................................................................................4
The summary of smartphone market in United kingdom...........................................................4
TASK 2............................................................................................................................................4
Forecasting the usage of smartphone by UK adult people..........................................................4
TASK 3............................................................................................................................................5
features that make usage of smartphones popular & favourite with older customers................5
TASK 4............................................................................................................................................5
‘pros and cons method’ used for expanding operations to Kingston.........................................5
TASK 5 ...........................................................................................................................................6
1.5 Cost of developing a new building & famous commercial mortgage lenders in United
Kingdom......................................................................................................................................6
TASK 6............................................................................................................................................9
1.6 Testing the Difference of Two Shops Net Banking............................................................9
TASK 7 .........................................................................................................................................10
1.7 Customer satisfaction..........................................................................................................10
TASK 8..........................................................................................................................................12
Quality assurance procedures..................................................................................................12
TASK 10........................................................................................................................................12
Summary...................................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
smartphone is classified as a type of mobile phone which is highly advanced and contains
innovative features. This is all because of stronger operating systems & hardware capabilities
that provides services such as internet, apps instalment, voice calls, messages and many more.
Almost all the people carry smartphones because of its wide usability(AGUILLAR, 2017). The
company which is taken into consideration to complete the report is ECO-FONE which is a UK
based company. The company mainly deals in smartphones & its accessories. The company have
two outlets one in Richmond and another in Putney. In order to expand its business, the company
is planning to deal in tablets & laptops. In this report, the overview of using mobile phones or
smart phones in united kingdom is going to discuss in relation to finance, product & customer
satisfaction. Later, it covers some suggestions and recommendations in order to expand business
is mentioned in this report.
TASK 1
The summary of smartphone market in United kingdom
According to the survey conducted by Deloitte for gain an insight about the usage of
smartphones in UK, it has been analysed that the consumption of smartphones is increasing
rapidly. With this, the smartphone sales is also increases and reach up to 1.5 billion yearly. In the
present, almost 65% of adult people were using smartphones which is expected to grow 92% by
2020. The increasing rate takes place because smartphones help people in their daily life and also
helps in performing activities which is related to work. In accordance to the report of 2018,
people using smartphones in UK for E-mails (46%), calender management (24%), voice calls
(39%) and so on. The applications which is mainly used by the people of United kingdom is
instant messaging, maps&navigations, photo gallery, mobile browser and many more(Farinosi,
Lim and Roll, 2016) .
The study reveals that phones are purchased with an rise of 30% from portable gadgets.
The majority of the sales of the items was about full. As far as other computing products are
concerned, laptops were bought by a 15% margin. The mobile segment in the United Kingdom

currently is too limited and is projected to expand exponentially in the years ahead. The very first
touch screen was launched 10 years ago and since the development phones are still made (About
smartphone market in United Kingdom, 2019).
TASK 2
Forecasting the usage of smartphone by UK adult people
As per the report of 2017, it has been sated that the usage of smartphone increases day to
day by adults and reach up to 84%. It is increased at the rate of 5% yearly. In addition to this,
people of age group between 18 to 44 adopt smartphones by 89% as compare to last years.
According to survey, it has been identified that people of the age group of 17-25 looks on their
phones around 100 times a day whereas people of age group 16-20 years accept that they look
and use smartphone 150 times a day. Along with this, 34% people belongs from the age group of
16-70 years use mobile phones when consuming food. The usage of smartphones by old age
people also increases year by year. As per report, in 2012, the usage rate of smartphone was 28%
which is ow increases by 70%. in the present situation, people of age 17-76 years use mobile
phones on regular basis whereas three percent people accepted that they use smartphones once in
a month only. Along with this, around 2% population uses phones once in a week. In addition to
this, 1% population accepted that they used mobile phones only in last month(Ferguson,
Friedland and Woodberry, 2015).
2012 2013 2014 2015 2016 2017
0
10
20
30
40
50
60
70
80
90
52
62
70 76 81 85
Smartphone

TASK 3
features that make usage of smartphones popular & favourite with older customers
The prevalence of phones in current market depends depending on the age of users, so older
generations will change very easily. It indicates that much more than 71 percent of people who
are under the age of 55 to 75 have their personal mobiles as per the Deloitte 2017 survey (About
smartphone feature. 2019). About 20 percent of older people said about 15 times daily that they
control their mobile phone. Herein, below some key features are mentioned that makes
smartphones more popular among older customers:
Bigger screen- This makes it popular with older consumers as one of the main advantages of
Smartphones. Since device consumers are larger, fonts will clearly be seen.
Easy to make payment via phone- Today's mobile enables users to pay with one button. It is
feasible. This is true because the bank accounts may be linked to transaction through cell
phones. Older consumers tend to pay electronically, because they can reduce the cost of
bringing currency, when purchasing phones.
Effective sound quality- Because of this feature, clients can hear all kinds of sounds more
easily. It is particularly useful for elderly consumers because they can detect noises without
hurting their hearing.
TASK 4
‘pros and cons method’ used for expanding operations to Kingston
The business activities of Eco-Fone has carried out from two outlets as the company did
not operated beyond the borders (Kim, 2017). The method which is used by the upper level
authorities in order to analyse the feasibility of opening outlets in Kingston is pros and cons

method. The pros and cons table is mentioned below with the scorecard so that average results
can be carried out which are as follows:
Should ECO-FONE
expand Operations
Yes, It is analysed that it is beneficial for company to open
its shop to Kingston:
Pros Score/10 Cons Score/10
Profitability & market
share increases
7 Face issues due to
difference in culture as
well as language
8
Recruiting the talented
workforce leads to
innovative and creative
concepts that is used by
company in expanding
operations
8 Competitors impact the
revenue and profitability
of the company
7
The company survive in
market due to its brand
image & reputation
8 Heavy investment is
needed to expand
operations & activities
7
The users or the
customer base rise
9 Difficulty in gaining
knowledge and
understanding of new
laws and policies
6
Total Pros 32/40 Total Cons 28/40
Average Pros 0.8 Average Cons 0.7
Analysis: This can be inferred in line with the above table that the business is to extend its
activities into Kingston. That's how the benefits are greater at 42. The counterpoint is 28. It
shows that the industry in Kingston should develop.
TASK 5
1.5 Cost of developing a new building & famous commercial mortgage lenders in United
Kingdom
Loan Amount £350000
No. of EMI's 180
Annual rate of Interest 0.07
Interest rate monthly 0.00583

Monthly EMI Cost £3145.90
Total Loan payment £566261.81
Total Interest Payable £216261.81
Mortgage loan refers to the amount given by bank against any property or an object of a
people. Mainly, this type of loan is prefer by individuals to purchase home, land and so on. The
loan is properly secured and the lender has the right to fortify property for which the loan is
taken in case if it is not paid with in a specified time period. It incorporates several aspects such
as interest rate, insurance, principal amount, tax and many more (Leme, 2015). Below are the
organisation which provide mortgage loan in United Kingdom:
It is a secured loan due to which lender can fortify the property of loan is not repay within
agreed time. The borrower needs to pay the loan along with interest amount (Donker and et. al.,
2013). It is also called as claim of property and incorporate different aspects like tax, insurance,
principle, interest rate. Some organisations in UK which offers mortgage loans are mentioned
below :-
Bank of Scotland
HSBC

Sterling capital reserve
Bank of Ireland
Sterling Knight

Together Commercial Mortgages
TASK 6
1.6 Testing the Difference of Two Shops Net Banking
Eco-Fone has two shops in Putney and Richmond that need to assess which shop is
strong in profit relative to other shops and to create its regular net use (Vollrath, 2016). The
business sells a variety of smart phones and computers. According to the data, these are:
First shop-
Mean => 100 pounds
Standard deviation => 20 pounds
Coefficient of variation (C.V.) = standard deviation / mean * 100
=> 20 / 100 *100
=> 20 %
Second shop-
Mean => 90 pounds
Standard deviation => 40 pounds
Coefficient of variation (C.V.) = standard deviation / mean * 100
=> 40 / 90 *100
=> 44.44 %

Analysis- Based on the above estimated meaning of the variance factor, it growing be observed
that the outcomes are distinct for both firms. Like in the shop one thing, it can be shown that the
variability coefficient is 20%. However, it can be evaluated in the second shop that the
variability coefficient is 44.44%. It reveals that the second shop is even stronger than the first.
That is despite the measured production gap. In addition to that, there are variations in the mean
and standard deviations, too.
TASK 7
1.7 Customer satisfaction
Question 2. How long you have used our product?
Option Number of respondents
Fewer then 6 months- 1
Between 6 months to 1 year- 30
Between 1 and 3 years- 37
Between 3 and 5 years- 27
More then 5 years- 8
Never- 0
Question 3 Please rate us on the following:
Option Number of respondents
Customer service- 7
Quality of product- 14

Sales staff- 52
Price/value- 30
Question 4. How would you rate yourself overall satisfaction with us?
Option Number of respondents
Very satisfied- 11
Satisfied- 10
Neutral- 16
Dissatisfied- 50
Very dissatisfied- 16
Question 5 . How likely are you to continue doing business with us?
Option Number of respondents
Very likely- 2
Likely- 14
Neutral- 30
Unlikely- 47
Very unlikely- 10
Question 6 . How likely are you to recommend our products?
Option Number of respondents
Very likely- 21
Likely- 60
Neutral- 0
Unlikely- 15
Very unlikely- 7
7. Please recommend us the ways to make improvement in our products &services.

Analysis & Interpretation: The primary research includes various questions and were asked by
the researcher to population. when researcher asked about the last purchasing time, it has been
found that average answer is last 3 months. In order to increase the consumption level, the
company needs to develop new strategies and plans. Second, the question asked is about the
using time of goods and services, the answer that is analysed was between 36 months to 72
months. It means the consumers are satisfied with the services and products of the company.
Third question that was asked by the researcher to users is about the services of company and the
average answer is good. It means people like the services of company but need to make changes
in order to reach it at superior level.
Fourth, the level of satisfaction customer get, the result which is analysed is satisfied that
means the organisations is producing products after analysing the requirements and needs of
customer effectively. In order to continue services, the result is neutral which means organisation
should bring some innovations in order to engage customers for longer time(Wang, 2015). At
last, the respondents asked about word of mouth to friends and family. it has been identified that
people prefer to do positive word of mouth about the services of the company. This assist
organisation in building strong customer base which directly leads to increase in revenue in an
appropriate manner.
TASK 8
Quality assurance procedures
Poisson Distribution refers to probability distribution that expresses and displays a
particular object or an event with in the specific time. The statistical distribution mainly used for
those events which are occurred at a constant rate. In this, the events or objects are measured and
analysed on the basis of happening & not happening. The variables takes place as per the whole
numbers. Poisson distribution does not includes fractions. In context to report, 10,000 invoices
has send by the company in a particular month from which two is returned in a month because of
some problems and errors. In this, the average is taken into consideration and be calculated by
the cumulative frequency (Farinosi, Lim and Roll, 2016). The frequency is rely on the basis of
cheque received and accepted by an individual. With this, there is a chance as well as possibility
of receiving 3 to 4 invoices in a month.

In the context of Eco-Fone Company, this can be applied in order to find out variation in the
errors in the invoices. Herein, below calculation is done which is as follows:
Sample size (n) = 10000
Mean (average) X = 2
Probability = 2 / 10000
= 0.0002
Poisson (3, 2, and 1) = 0.8571 or 85.71 %
= 100 – 85.71
= 14.29 %.
TASK 10
Summary
After analysing the above data, it has been concluded that smartphone plays a very
crucial part in one's life. It helps individuals in carrying out activities their regular activities. The
population of United kingdom use smartphone for the official and informal work. The percentage
is high of those people who uses smartphone for entertainment rather than the person who uses
phones for their official work. The old age people prefer using phones in order to purchase
books, booking and and many more. Such as on the behalf of task one this can be stated that
market of smartphone in UK is too wide and can be expanded in further. Further task states that
above company should expand business in Kingston as this is suitable and can be beneficial. As
well as company’s second shop is better as compared to shop second because of higher
efficiency.

CONCLUSION
From the above report it has been analysed that population of united kingdom uses
smartphones for both formal and informal work. Usability of mobile phones increases rapidly in
the market of UK, With this, the organisation who is dealing in these sectors gain profitability
and opportunity of expanding their businesses. Features of smartphones like browser, Bluetooth,
internet, music player etc., attracts the old people and they purchase smartphones for their
entertainment purpose. In addition to this, methods such as questionnaire, pros & cons method
assist organisation to make effective strategies and increase their productivity as well as
performance.

REFERENCES
AGUILLAR, F. H. F., and et. al., 2017. Col Dir. eco.-Empresas estatais. Editora Saraiva.
Farinosi, M., Lim, C. and Roll, J., 2016. Book or screen, pen or keyboard? A cross-cultural
sociological analysis of writing and reading habits basing on Germany, Italy and the
UK. Telematics and Informatics. 33(2). pp.410-421.
Ferguson, S., Friedland, D. and Woodberry, E., 2015. Smartphone technology: Gentle reminders
of everyday tasks for those with prospective memory difficulties post-brain injury. Brain
injury.29(5). pp.583-591.
Kim, J. H., 2017. Smartphone-mediated communication vs. face-to-face interaction: Two routes
to social support and problematic use of smartphone. Computers in Human Behavior. 67.
pp.282-291.
Leme, D. M., and et. al., 2015. Eco-and genotoxicological assessments of two reactive textile
dyes. Journal of Toxicology and Environmental Health, Part A. 78(5). pp.287-300.
Vollrath, M., and et. al., 2016. Do German drivers use their smartphones safely?—Not
really!. Accident Analysis & Prevention. 96. pp.29-38.
Wang, J. L., and et. al., 2015. The role of stress and motivation in problematic smartphone use
among college students. Computers in Human Behavior. 53. pp.181-188.
Online:
About smartphone market in United Kingdom. 2019. [online] available
through:<https://www.deloitte.co.uk/mobileuk2017/assets/img/download/global-
mobile-consumer-survey-2017_uk-cut.pdf>
About smartphone feature. 2019. [online] available through:
<https://www.bbc.com/news/technology-41319684>