Eco-Fone: UK Smartphone Market Analysis, Expansion Feasibility Report

This report provides a comprehensive analysis of the UK smartphone market, focusing on the business strategy of Eco-Fone, a company selling smartphones and accessories. The report examines key aspects such as the overview of the mobile phone market in the UK, forecast of smartphone usage by adults, and the potential market among older customers. It also assesses the feasibility of business expansion, including the cost of a new building, and compares the net takings of the existing shops. Furthermore, the report evaluates consumer satisfaction levels and the procedures for quality improvement. The analysis uses statistical data and relevant research to support its findings and conclusions, offering recommendations for Eco-Fone's future business decisions.

ECO-FONE
SUMMATIVE ASSESSMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................2
Overview of the mobile phone market in the UK.......................................................................2
TASK 2............................................................................................................................................4
Forecast over the use of Smartphones by adults ........................................................................4
TASK 3............................................................................................................................................5
A potential market of smartphones of older customers..............................................................5
TASK 4............................................................................................................................................6
Feasibility of business expansion................................................................................................6
TASK 5............................................................................................................................................7
Cost of new building...................................................................................................................7
TASK 6............................................................................................................................................8
Possible difference in the net tasking in the two shops...............................................................8
TASK 7............................................................................................................................................9
Level of consumer satisfaction....................................................................................................9
TASK 8..........................................................................................................................................10
The procedure of quality...........................................................................................................10
TASK 9..........................................................................................................................................11
REFERENCES..............................................................................................................................11
TASK 10........................................................................................................................................12
Conclusion and findings............................................................................................................12

INTRODUCTION
The Eco Fone smartphones is an organisation indulge in the activity of selling
smartphones and its accessories. The business has two shops one in Putney and another in
Richmond. The business do not sell laptops and tablets. In the recent times the entity is thinking
to undertake certain changes. In the parent report the trends that are seen by the business are
analysed in the light of overviews of the phone market in UK, the use of phones by adults,
market for older consumers, feasibility of the expansion. Moreover, calculation for the cost of
new building under the expansion plan, comparison of the net taking form both shops, response
from the consumers and procedure to improve the quality is presented.
1

TASK 1
Overview of the mobile phone market in the UK
In the UK there are about more then 32 million of the working people. Out of this more
than one half is engaged in using the smartphone for at least activity which is related with the
business. The use of smartphone in different activities by the workers can be defined as 44% for
e-mails, 34% for voice call, 23% for calendar management. The applications which are difficult
to use such as legacy information and reporting system have a lower use in the working people.
The workforce in UK also usage he application which are unofficial such as instant
messages, mobile browser, navigation and the application related with photos. 40% of the
working people in UK use WhatsApp at least one in a day (Global mobile consumers survey,
2017). The facts revealed that working people do not use smartphones for work related activities
as us can be outlines as 4% to submit expense, 6% for internet access and 5 % to submit the time
sheet. But for those who are engaged in such services where there is need of computers but can
not carry keyboard at the job such as traffic police, retail seller, smartphones can prove to be
boon to respond quickly and for better information.
Use of Smartphone diffident activities:
Activities 2016 2017
E-mial 41.00% 37.00%
Voice calling 33.00% 32.00%
Calendar management 3.00% 0.00%
To view documents 17.00% 0.00%
2

2016 2017
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00% 41.00%
37.00%
33.00% 32.00%
3.00%
0.00%
17.00%
0.00%
E-mial
Voice calling
Calendar management
To view documents
3

TASK 2
Forecast over the use of Smartphones by adults
Year 2012 2013 2014 2015 2016 2017
Laptop 73.00% 76.00% 75.00% 79.00% 76.00% 78.00%
Smartphone 52.00% 62.00% 70.00% 76.00% 81.00% 85.00%
Tablet 16.00% 36.00% 50.00% 60.00% 63.00% 68.00%
From the above line it can be stated that the usage of laptop, there is no huge gaps can be
seen in the percentage of people using laptop over a period of 5 years. The percentage use
fluctuates between 73-79 %in all 5 years, hence it can be stated that in over a long time the use
of laptops have not been changes and people use the laptop in same or some extended way. But
there is no major growth in the usage of laptops.
Foe smartphones it can be seen that usage percentage was just 52% 2012 but with year
by year it the use is getting higher and higher which have now reached to 85%. This shows that
with time inclination of the people is getting towards the smartphones and the industry is
growing at a faster pace. Fir the use of tablets it can be seen that the usages of tables was very
low back in 2012 just at 16% and with time it has grown to a grate limit to 68% in a time span of
5 years the grown percentage is 52%. Where as the growth percentage in usage of smartphones is
just 33% and for laptops it is just 5 %.
4
Laptop Smartphone Tablet
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
2012
2013
2014
2015
2016
2017

5

TASK 3
A potential market of smartphones of older customers
As per the report by BBC over the use of smartphones among the old people 71% of the
people between the age of 55-75 owns and use the handsets and phone with application
capabilities. This age group have shown a faster rate of adaptivity towards the smartphones in a
span of last 5 years. The facts us also revealed that members of demographics tends to use
smartphones with a lesser average of younger people (Smartphone sales boom with over-55s,
2017). Such as 20% of the older generation checks their phone after waking up which is much
lesser than an average rate of 56% of the nation and 50% of the old people have installed
Facebook on their handsets. Based on the study carried out on 1163 people in may and June of
2017, it is being suggested that the people between the age group of 55-75 have a higher average
wealth and this enables them to but premium phone handsets. One of the another reason of
increasing use of smartphones among the older generation is that their children hands them the
phone to use and some of the first times buyers revealed the fact that they were forces to buy the
phones and make them purchase (Mertler and Reinhart, 2016). Another factors influencing the
use among the people between the age of 55-75 is that in the cities it has become difficult to
book a taxi without a phone application. The modern phone provides big screens which is good
for older people with weak eyesight with a louder speakers. This suggests that older people are
happy with the idea of using the smartphones as they can just pick up a phone and use is rather
than wasting there time of pressing the buttons.
6

TASK 4
Feasibility of business expansion
Should we expand our business to Kingston?
Pros Score/10 Cons Score/10
Increase in the sales of
Smartphones
9 Increased cost of production 8
Extended market share 8 Effects on present market 5
Increment in profits 7 Difficulties in surviving in new
market
6
Effects of the reputation of the
business
6 Complying with laws and rules
of Kingston
7
Total Pros 30 Total Cons 26
Average Pros 7.5 Average Cons 6.5
From the above table it can be seen that the pros are more than cons by 2 points with an
average of more by 1 point. So it can be stated that for the Eoc fones it Si feasible to enter in the
market of Kingston as this will enhance its profitability, market shares as well as the reputation.
7

TASK 5
Cost of new building
A)
Cost of building construction 400000
Negotiable 350000
Year for repayment 15
Mortgage Amount 350000
Rate of interest per annum 7
Debt payment
Total loan amount / Discounting
factor
[((1+0.07)^15)-1]/
[0.07*(1+0.07)^15]
1.76/0.19
9.11
350000/9.11
Total loan amount s 38419.32
Monthly repayment amount 38419.32/12
3201.61
Interpretation: From the above table it can be interpreted that for the total amount
needed to construct the building is 400000 and for the same mortgage is taken for 350000 (Quan
and et.al., 2018). The loans amount is to be repaid in a time period of 15 years at a interest rate
of 7% per annum. For the same the amount of instalment calculated for 15 years is 38419.32.61
per year. This is includes the principle as well as the interest amount at the rate of 7% per annum.
The amount to be repaid every month for 15 years is calculated to be 3201.61.
8

TASK 6
Possible difference in the net tasking in the two shops
Particulars Amount Shop one Second shop
Sample 40
Mean 100 90
Standard deviation 20 40
H0: Null hypothesis: No significant difference in net taking of two shops.
H1: Alternative hypothesis: Significant difference in net taking of two shops.
Assessment of Z score value
Mean value-
Shop one
Mean value
Shop- 2
Standard
deviation
for shop
one
Z score
assessment
Standard
deviation for
shop two
Z score
assessment
100 90 20 (100-90)/20= 40 (100 – 90) / 40
0.5 0.25
Interpretation: Form the above table it can be seen that the assessment value for net
taking of both the shops are calculated as more than 0.05. The values of p is more than then the
5% significant level (oustra and et.al., 2015). This shows the facts the net taking from both the
shops moves in opposite direction and there is no significant relation between the values of net
taking from 2 shops. Here the null hypothesis is accepted at value comes to be more than 0.05.
9

TASK 7
Level of consumer satisfaction
Q1 Q2 Q3a Q3b Q3c Q3d Q4 Q5 Q6
Mean 2.95 2.89 1.98 2.50 3.25 2.51 2.51 2.52 3.71
Standard
Error 0.15 0.09 0.08 0.09 0.12 0.10 0.12 0.09 0.11
Median 3 3 2 2 4 3 2 2 4
Mode 4 3 2 2 4 3 2 2 4
Standard
Deviation 1.48 0.95 0.84 0.87 1.25 1.07 1.19 0.92 1.15
Sample
Variance 2.18 0.90 0.71 0.76 1.56 1.13 1.41 0.84 1.33
Kurtosis -1.46 -0.72 0.24 -0.65 -0.82 -1.21 -0.17 -0.13 0.24
Skewness -0.03 -0.27 0.75 0.26 -0.89 -0.16 0.84 0.47 -1.10
Range 4 4 3 3 4 3 4 4 4
Minimum 1 1 1 1 1 1 1 1 1
Maximu
m 5 5 4 4 5 4 5 5 5
Interpretation: For all the 5 options of each question the option 1 is given a value of 5,
for 2 it s 4, for 3 it is 3 and for the 4 it s 2 and fro the 5th option the values assigned is 1. From the
above table it can be seen that for the question related with the consumer purchase of the product
from Eco fone. Most of the answer were for values 3 that is option 3, between a period of 3-6
months. The consumers have used the services of the organisation for a time frame of 1-3 years.
Furthermore, consumers services of the firm are marked as fair, quality of products and serveries
are regarded between good and fair (Feller, 2015). The sales staff and prices and values are
considered to be good by the consumers. Most of the consumers are neutrals to the level of
satisfaction with the Eco-fones and about continuing the business with the organisation. But the
facts is also determined that most of the consumers are likely to recommend the product and
services of Eco-fones to others (Ali, and Bhaskar, 2016). The median values for all 6 answer fall
between range of 2-4, which means the consumers has a moderate level of response for the
questions as they are not to positive nor to negative about the firm.
10