Eco-Fone's UK Smartphone Market Expansion: A Comprehensive Report

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

Analysing Information & Data for Problem Solving
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Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
Task 2...............................................................................................................................................4
Task 3...............................................................................................................................................6
Task 4...............................................................................................................................................7
Task 5...............................................................................................................................................7
Task 6.............................................................................................................................................11
Task 7.............................................................................................................................................11
Task 8.............................................................................................................................................15
Task 9.............................................................................................................................................16
Task 10...........................................................................................................................................17
Conclusion.....................................................................................................................................17
Appendix........................................................................................................................................18
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Introduction
Smartphone has become one of the most important devices of the electronic industry. It has
become significantly popular from the time of the invention of the Smartphone. The Smartphone
industry has a huge customer base including the young and old people of the country. This report
will include the detailed analysis of the Smartphone market in the country with proper data and
statistics of the industry as Eco-Fone is planning to expand its business in UK. The features of
the Smartphones will be described in the report and it will help to understand all the details of the
Smartphone industry. The report will outline all the data and statistics of the Smartphone
industry in the country. It will help to understand different interesting facts of the UK market.
Task 1
Provide a summary of the UK Smartphone market.
Smartphone is one of the most popular devices and it is significantly popular in the market of the
country. The Smartphone has a huge customer base and the numbers of the users in the
Smartphone market has been increased at a significant number. Presently near about 84% of the
adult users are using it in UK. The number of the users of Smartphone will be increased to 90%
within 2020 (Deloitte.co.uk, 2019). It will provide Eco-Fone a huge market in the country.
Amount of the sales of the Smartphone in country is 1.5 million per day. More than 91% users of
Smartphones in the country are within the age of 16-75 years. The Smartphones are being
popular within the elderly people too. Different features of the Smartphones are making it more
effective in the market of UK.
The Smartphones are becoming highly upgraded and the connectivity of the Smartphones is
becoming high. In some days, the Smartphones will use the gigabyte connectivity in the phones.
The gigabyte connectivity in the Smartphones will be a catalyst in the sales of the Smartphones
in UK. The market and the top features that are used in the Smartphones will be analysed in this
report for better understanding of the market for the Eco-fone in UK will be done below.
Activities 2016 2017
Email 41% 44%
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Making Voice calls 33% 34%
Calendar management 3% 23%
Documents viewing 17% 0%
Table 1: Top activities of working people in UK
(Source: Deloitte.co.uk., 2017)
Email
Making Voice calls
Calender management
Documents viewing
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
41%
33%
3%
17%
44%
34%
23%
0%
Smartphone Activities of Working People
2017
2016
Figure 1: Graphical representation of top four activities of working people in UK
(Source: Created by learner)
Task 2
According to the research of Deloitte, it can be said that the usage of Smartphones have
increased at a significant rate. Not only the Smartphones but also all the other devices have
started to increase in the country. The usage of Smartphones has increased from 52% to 85%
from 2012 to 2017 (Deloitte.co.uk, 2019). Five years have helped the Smartphones industry
to increase at a huge rate. The graph of the usage of the Smartphones and the forecasting of the
Smartphones industry will be given below:
Devices 2012 2013 2014 2015 2016 2017
Smartphones 52% 62% 70% 76% 81% 85%
Table 2: Usage rate of Smartphones in UK
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(Source: Deloitte.co.uk. 2017)
2012 2013 2014 2015 2016 2017
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Smartphones
Smartphones
Figure 2: Graphical representation of rate of using devices among the adults in UK
(Source: Deloitte.co.uk. 2017)
The forecasting can be done depending on the result of the previous years in the market of the
country. In last five years, the sales of the Smartphones have been increased at a significant rate.
The trend line of the graph is upward. The graph of the forecasting of the sales in the country
will be given below:
Devices 2018 2019
Smartphones 94% 100%
Table 3: Forecasting table of the Smartphones usage in UK
(Source: Deloitte.co.uk. 2017)
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2018 2019
0
0.2
0.4
0.6
0.8
1
1.2
80%
100%
94%
Forecasting Table
Devices
2019
Figure 3: Graphical representation of forecasting rate of Smartphones usage in UK
(Source: Deloitte.co.uk. 2017)
Task 3
UK has noticed a huge popularity of the Smartphones within the old people of the country. A
research has been conducted by BBC, which denotes the rate of using Smartphones within the
elderly people. Smartphones are coming with the new and up to date featured that are helping to
increase the popularity of the Smartphones in the country (BBC News, 2019). One of the most
important reasons of being the Smartphones popular to the elderly community is the big screens
of the phones. The elderly people generally have poor eyesight and the bigger screens of the
phones make it more convenient for the elderly people to use the phones.
The speakers of these phones have better sound system that has helped the elderly people to
listen to the conversation in the phone in a clearer way. Facebook is already a popular
application within the elderly people to connect to the friends and the Smartphones have helped
the elder community to use the Facebook more easily. It is one of the major reasons of the
popularity of Smartphones according to the research (BBC News, 2019). A huge number of
people within the elderly community use Smartphones because their children gift the phones.
Another advantage of the Smartphones is the face lock and it has reduced the effort of the elderly
people in fiddling with the keys of the phone. Using the Smartphones has become easier. The
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Smartphones are costlier than the normal phones, the elderly people are generally wealthier than
the young generation, and it has made them to use the Smartphones more.
Task 4
Should we expand our business to Kingston?
Pros Score/10 Cons Score/10
Huge revenue potential of the
country 8 Huge costing 8
High demand for the products in the
market 9
Affect of losing prime
customers 7
Labour market of the country is large 7 Conducting the foreign trade 8
High amount of the foreign
investment 8 Different time zones 5
Market diversification 8 Currency fluctuations 9
Effective operation of the companies 9 Political instability 9
Huge talent acquisition 8 Communication barrier 8
Total Pros 57 Total Cons 54
Average Pros 8.1 Average Cons 7.6
Table 4: Pros and Cons table for the expansion
(Source: Created by the learner)
The above table denotes that the amount of cons for the expansion in the country is less than the
amount of pros (Collins et al., 2015). Eco-Fone can easily decide to expand its business in UK
and it will be effective for the company. The sales of the company will be increased in this case.
Task 5
Eco-Fone has an option of buying or leasing a building in UK. Eco- phone wants to buy the
building in the country and the actual cost of the building is £400000 but the company can get it
at £350000. Now the company wants to take a loan, the rate of the interest for the loan is 7%,
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and the total time the company will take to repay the loan is 15 years. The calculation of the
mortgage repayment will be given below:
Input Variables
Loan Amount £ 350,000.00
Annual Interest Rate 7.0%
Mortgage Period in Years 15
Additional Monthly Mortgage Repayment -
Annual Interest Rate Sensitivity 0.0%
Average Annual Inflation Rate 1.8%
Table 5: Details of the loan
(Source: Created by the learner)
The mortgage repayment amount for 15 years will be as follows:
Calculation Formulae Results
Monthly Mortgage Repayment =PMT(rate ,nper, pv,
fv, type)
3,145.90
Total Interest over Mortgage Period =C12-C2
125,053.16
Total Mortgage Repayment over
Mortgage Period
=C10*12*C4
566,261.81
Table 6: Repayment amount table
(Source: Created by learner)
The above calculation states that the monthly instalment of the company for the building will be
£566,261.81. The company has to pay this amount monthly for 180 months to repay the loan of
buying the building.
b. Provide a table of the logos of the companies that provide mortgages.
Companies Logos
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1. Lloyds
2. Santander
3. Nationwide
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4. Barclays
5. Royal Bank of Scotland (RBS)
6. HSBC
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7. Principality
8. Accord mortgages
Table 7: Table of the logos of the companies
(Source: Created by the learner)
Task 6
Sample size= 40
Mean= £100
Standard deviation = £20
Mean = £90
Standard deviation = £40
The net takings of the first shop is = £ (100*40) = £4000
The net taking of the second shop is = £ (90*40) = £3600
The above calculation gives a clear idea of the net takings of two shops that are being done here.
It can be viewed, that there are two shops that are taken into consideration. The sample size that
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is used in the research is of 40. The mean of the two shops are £ 100 and £ 90 respectively. The
standard deviations of the two shops are £ 20 and £ 40. Thus, it can be seen that there is a
difference in the mean and the standard deviation of the two shops. This makes the net takings of
the first shop to be £ 4000 and the net takings of the second shop are £ 3600. This shows that the
net takings of the first shop are higher than that of the second shop.
Task 7
ID Q1 Q2 Q3a Q3b Q3c Q3d Q4 Q5 Q6
001 1 3 2 3 4 3 2 3 5
002 4 2 4 3 2 1 4 3 2
003 1 4 2 3 2 4 2 3 5
004 3 4 1 2 4 2 1 2 5
005 2 4 2 3 4 1 2 3 4
006 2 3 2 3 4 4 2 3 4
007 1 3 1 4 4 4 4 5 4
008 4 2 2 3 4 1 2 3 4
009 1 1 3 2 4 1 3 2 4
010 3 4 2 2 1 2 2 2 1
011 2 4 2 2 4 2 2 2 4
012 2 3 1 1 1 1 4 1 5
013 5 3 3 4 4 3 3 5 4
014 4 2 2 2 4 3 2 2 4
015 1 4 2 1 1 3 2 1 5
016 3 4 1 2 4 4 4 2 4
017 2 4 2 2 1 2 2 2 5
018 2 3 1 2 4 3 5 2 4
019 1 3 3 4 4 3 3 4 4
020 4 2 1 2 2 3 5 2 2
021 1 1 2 3 4 3 2 3 4
022 3 4 1 3 2 1 5 3 2
023 2 4 2 3 2 4 2 3 2
024 2 3 1 2 4 2 5 2 4
025 1 3 2 3 4 1 2 3 5
026 4 2 2 3 4 4 2 3 5
027 5 1 4 4 4 4 4 4 5
028 3 4 2 3 4 1 2 3 4
029 2 4 3 2 4 1 3 2 4
030 2 3 2 2 1 2 2 2 5
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