Eco-Fone Smartphone Market Analysis: UK Expansion Strategy

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

ANALYSING INFORMATION AND DATA FOR
PROBLEM SOLVING
1

Table of Contents
Task 1.........................................................................................................................................3
Task 2.........................................................................................................................................5
Task 3.........................................................................................................................................7
Task 4.........................................................................................................................................8
Task 5.........................................................................................................................................9
Task 6.......................................................................................................................................13
Task 7.......................................................................................................................................14
Task 8.......................................................................................................................................17
Task 9.......................................................................................................................................18
Task 10.....................................................................................................................................19
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Task 1
Smartphones are from some of the few gadgets of the electronic industry that have become
highly popular within a very les time. The market of smartphone has been flourished in all
the countries. The Eco-Fone is a company of Smartphone that is thinking of expanding its
business to a new market. Now the company has chosen the market of UK to expand its
business. In this report, the smartphone market of UK will be analysed and the data and
statistics will be given in the report for supporting the analysis of the market.
According to the report of Deloitte, UK is one of the largest market of the world for the
electronic gadgets. The annual sales of the smartphones in UK is near about 1.5 billion and
near about 4.5 million smartphones are sold in the market of UK. Near about 88% users from
the age of 16-79 years use smartphones on daily basis (Deloitte.co.uk, 2019). High
connectivity of the smartphone is one of the most important features of the smartphones. The
connectivity of the smartphone will reach up to gigabyte connecting technology. The rate of
using the smartphone is highest among the youths of the country. Around 91% youth uses
smartphone on daily basis. The growth of top 3 applications will be given with statistics
below:
Activities 2016 2017
Using the facility of emails 41% 44%
Making calls by the people 33% 34%
Managing the structure 3% 23%
Viewing the documents in phone 17% 0%
Table 1: Top activities of working people with smartphone in UK
(Source: Deloitte.co.uk, 2017)
3

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: Top activities of working people with smartphone in UK
(Source: Created by the learner)
4

Task 2
Usage rate of smartphones among the adults have increased at a huge rate. Presently 88%
adults of UK use smartphones. The gadget has got a huge popularity for different features.
The statistics of using smartphones of the adults in UK 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
(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 above table denotes that the usage of smartphones in the country has taken a sharp
increase in the graph. It has been increased at a huge rate within some years. Depending on
the previous table the rate can be forecasted for next two years. The linear fire casting will be
used here.
Devices 2018 2019
Smartphones 94% 100%
Table 3: Forecasting table of the Smartphones usage in UK
(Source: Deloitte.co.uk. 2017)
5

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)
Linear forecasting is not appropriate for this portion because the accuracy of the linear
forecasting is questionable. This data will be used by the company to get idea about the
production process. If the accuracy of the data is not high, it will mislead the company and
that might cause wastage of inventory of the company or shortfall of inventory.
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Task 3
Smartphone does not only has the market of the young people but it is also getting popular
within the older people of the country. Different features of smartphones have made it more
popular to the older people. Bigger screens of the phones are the main reasons of getting the
attraction of the elder people. The bigger screens of the phones have made it more convenient
to the elderly people (BBC News, 2019). Face lock and the loud speakers have made the use
of phones easier to the senior people. The online payment features have made the banking
and transactions more convenient to the elderly people. These are the main features of the
smartphones that has helped the smartphones companies to increase the sales in the elderly
people.
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Task 4
Should we expand our business to Kingston?
Pros Score/10 Cons Score/10
Vast revenue prospective of the
country 8 Huge estimation of cost 8
Extraordinary demand for the
products in the market 9
Effect of losing key
consumers 7
Large market of labour in the
country 7 Leading the foreign trade 8
Significant amount of the foreign
investment 8 Diverse 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)
From the above table, it can be seen that the pros are more than the cons of the country. The
expansion of the market of the company will be convenient for the company.
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Task 5
a. Calculate the Loan repayment schedule
The company has decided to expand to the market of UK. Now the company is targeting to
buy a building in the country. The loan repayment model for the building 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)
b. Provide the logos of eight companies that give mortgage in UK.
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Companies Logos
1. Lloyds
2. Santander
3. Nationwide
4. Barclays
10

5. Royal Bank of Scotland
(RBS)
6. HSBC
7. Principality
8. Accord mortgages
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Table 7: Logo Table
(Source: Created by the learner)
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