Eco-Fone: UK Smartphone Market Analysis and Business Strategy Report

This report provides a comprehensive analysis of Eco-Fone's business operations within the UK smartphone market. It begins with an overview of the smartphone market in the UK, including market share data for major companies like Apple and Samsung, and forecasts for future smartphone usage. The report then analyzes the potential for Eco-Fone to expand its business, particularly focusing on the older customer demographic. A feasibility study, using a pros and cons table, evaluates the possibility of business expansion to Kingston, followed by a detailed cost analysis of opening a new building in Kingston. Furthermore, the report investigates the difference in net takings between Eco-Fone's two shops and examines consumer satisfaction through a proposed survey. The report concludes with findings and recommendations based on the analysis.

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REPORT FOR ECO-FONE

TABLE OF CONTENTS
Introduction............................................................................................................................................3
Analysis of Issues for Eco-Fone Smartphones......................................................................................4
1.1 A Background of the Smartphone market in the UK................................................................4
1.2 Predicting the UK Adult Smartphone use.................................................................................7
1.3 Smartphones - A potential industry for older customers in United Kingdom...........................9
1.4 Feasibility of growing business to Kingston using Pros and Cons table.................................10
1.5 Costs of a New Building in Kingston.....................................................................................11
1.6 Investigating the Possible Difference in Net Takings in the Two Shops................................12
1.7 Consumer Satisfaction............................................................................................................14
1.8 Quality Procedures.................................................................................................................15
1.9 Conclusions & Findings.........................................................................................................16
References.............................................................................................................................................18
APPENDIX...........................................................................................................................................19

Introduction
Eco-fone limited company is private limited organization with share capital. This
company was founded on 18th Auguest, 2009. Mr. Michael David who is director and company
secretary of the organization is the key people since its inception (Eco-Fone Limited Company,
2019). This company sells the smartphones from its two shops.
Present study will highlight the smartphone market in United Kingdom, usage of
smartphones by adults, usage of smartphones by older customers and expansion of business
through Pro and Con method. It will analysis the costs of new building, difference between
both shops net takings, consumer satisfaction and quality process.

Analysis of Issues for Eco-Fone Smartphones
1.1 A Background of the Smartphone market in the UK
Smartphone industry was started from 1992. Today, this industry has completed a
decade and still growing (Sánchez and Carro, 2017).
This industry has become global one where many companies are competing with each
others in order to lead this market. In UK, Companies' market share till June 2019 are as
follows -
Smartphones Companies Their Market shares in %
Apple 48.76%
Samsung 29.61%
Huawei 7.98%
Sony 2.35%
Motorola 1.93%
Others 1.33%

Using of Smartphones are continuously increasing with passing years since its
inception due to change in technologies which impact the consumer behaviour and preferences
easily and rapidly (Rahim and et.al., 2016).
In year 2017, Smartphone penetration was 85% in UK adults. This means adults of UK
are considered to be active users of smartphones. This rate are expected to be increase in 2020
by around 90%.
In UK, not only adults but also youngsters and oldsters are using smartphones too much
which can be seen by looking upon following table -
Apple
Samsung
Huawei
Sony
Motorola
Others
Illustration 1: Market shares of Companies in UK market

Population of UK age wise in % Their usage of smartphones in a day
16 to 19 years (12%) use their smartphones at least 200 or more
than 200 times in a day.
16 to 24 years (17%) use their smartphones at least 100 times in a
day.
16 to 75 years (34%) always engage in their phones along with
another activities.
16 to 75 years (64%) use their smartphones also during crossing
and walking on the road.
18 years (55%) use their smartphones within 15 minutes after
waking up.
18 years (78%) use their smartphones 1 hour prior to go to
sleep.
(Deloitte, 2017)

1.2 Predicting the UK Adult Smartphone use
In UK, usage of smartphones are continuously increasingly with time. This is
happening due to increase the craze of smartphones among the adults. In year 2012, the
smartphones adoption rates of Adults were 52% which increase in year 2017 and become 85%
(Deloitte, 2017).
Smartphone penetration rate among UK adults during 2012 to 2017 are as follows -
Year Penetration Rates
2012 52%
2013 62%
2014 70%
2015 76%
2016 81%
2017 85%
2018 (Expected) 93.70%
2019 (Expected) 100%
2020(Expected) 106.70%

From the above graph, it can be interpret that the penetration rates are growing in
current as well as in upcoming years. It can be forecast that in year 2018, the growth rate will
reach at 93.70%. In year 2019, it will be 100% and in year 2020, the expected rate will be at
106.70%.

1.3 Smartphones - A potential industry for older customers in United Kingdom
Smart mobile phones are not only grabbing attention of youngsters and adults. They are
also able to attract the oldsters also who are 60 or 60 above age. Smartphone sales in the
market are increasing with the increase in older smartphone users. There are various reasons
which result in an increase the usage rate of smart mobile phones by older customers in UK.
These reasons are as follows -
No more pocket money or wallet – Smartphones has the feature to keep the money in e-wallet
or e-banking apps which lead customers not to carry so much cash in their pocket or wallet.
This make them relieve or free from tensions being theft or lost (Molenaar, 2016).
Online payment system – Due to smartphones, Customers has the facilities to pay money at
anywhere, anytime and anyone they want to pay. Also, they can get payment from another
smartphone users anytime and anywhere. This make their convenience for receiving and giving
payments more easy.
Small and unique features – There are various small yet unique and useful features in the
smartphones which make customers life much comfortable. They can book cab or auto for
themselves. They can chat or video call anyone and anytime. They can get any kinds of news
of anywhere in the world at one tap on their screen.
All above features have attracted the older customers and make their lives more
comfortable. These all impact the smartphone industry in UK for older customers. In year
2017, 20% of older population in UK are using smartphones with in 15 minutes of waking up
(Smartphone sales boom with over-55s, 2017).

1.4 Feasibility of growing business to Kingston using Pros and Cons table
Should Eco-Fone expand their business to Kingston ?
Pros and Cons Table for Kingston Expansion
PROS Score out of 10 CONS Score out of 10
More Revenue 8 More Debt 7
Strong Customer Base 9 Increase in Costs 8
Enhanced Brand
Image
8 Lack of Customers'
Confident
6
Increment in Market
Share
7 More Work Pressure 7
Total Pros Score 32 Total Cons Score 28
Average Pros Score 8 Average Cons Score 7
From the above pros and cons table method, it can be interpret that company have
feasibility to grow its business in Kingston. Due to expansion of business in Kingston,
Company will get so many benefits which will help them to achieve their organizational goals
and objectives. If company gets new customers, it means company are able to sell smartphones
to their customers. This will help company to gain revenue as well as earn profitability which
will lead to increase in market shares. It also indicates that company are able to satisfy their
customers. This will help company to better its customer base and brand name and image.
Also, these all lead company to lower its debt and work pressure. Overall company will able to
sustain its business in competitive environment (Kamargianni and Matyas, 2017).

1.5 Costs of a New Building in Kingston
For expansion of the business into Kingston, Firm is planning to open new premise for
the selling of smartphones and its related accessories to the customers. For the new premise,
Company is looking for a building (Hubert and et.al., 2017). A suitable building is available to
the company at the rate of around £400,000. The cost for purchasing and constructing the
building according to themselves are as follows -
ELEMENTS COSTS
Building Costs £400,000
Council Fees £2000
Insurance of Building £10000
Interior Designers Fees £50000
Security and Safety Equipments £50000
Electricians £1000
Plumbers £1500
Carpenters £1200
Labour Charges £3000
Landscape Designers £15000
Others £4300
TOTAL COSTS £538000
Company will have to bear around £538000 costs for purchasing and constructing the
building for the attraction of the customers. In order to gain customers' attraction, Company
has to focus on the building structure, interior and construction. It must be suit to the type of
business, Company is doing (Gowthami and Kumar, 2016).

1.6 Investigating the Possible Difference in Net Takings in the Two Shops
Eco-Fone’s two shops offer mobile phones and accessories at discounted rates. Both
shops have been running for several months and Eco-Fone now wants to compare the net
taking from both shops (Shi and et.al., 2018). A sample of 40 net daily takings from the first
shop has a mean £100 and a standard deviation of £20. A sample of 40 net daily takings from
the second shop has a mean of £90 and a standard deviation of £40.
Calculation of net taking and their comparison are as follows -
Particulars Figure
Sample 40
Average 100
Standard deviation 20
Second shop
Mean 90
Standard deviation 40
H0: Null hypothesis: There is no significant difference in net taking of two shops.
H1: Alternative hypothesis: There is significant difference in net taking of two shops.
Monetary value of Z score value
Table 1
Mean value of one shop 100
Mean value of second shop 90
Standard deviation (one shop) 20
Z score assessment (100 – 90) / 20
0.5
Table 2
Mean value of one shop 100
Mean value of second shop 90

Standard deviation (two shop) 40
Z score assessment (100 – 90) / 40
0.25
The above table is assessing Z score value with the help of the value of alpha, where p
value is smaller than 0.05 then null hypothesis is disapproved and vice versa. In table 1 and 2
both value are greater than 0.05 so null hypothesis is actual. So, it could be detailed that there
is no difference between net taking of both shops of the Eco-fone company (Vorley and
Williams, 2016).

1.7 Consumer Satisfaction
Customer Satisfaction (which can be written as CSAT) is a business term which is
being associated with the products and services offered by an organization. It refers to the
extent to which a company is able to satisfy their customers' needs and wants by supplied the
goods and services to them. It is a part of customers' experiences which they feel during the
interaction with the employees and after using the offered products and services (De Saulles,
2016).
Customers satisfaction is considered to be a factor which determines the success of the
company. Thus, for the success of the company, Eco-Fone business will measure the
customers' satisfaction on the basis of three terms – Highly satisfied, Less Satisfied and
Moderate Satisfied. The measurement of the customers' satisfaction will be done through the
survey which are as follows -
ECO-FONE COMPANY
CUSTOMER SATISFACTION SURVEY
Are you satisfy with the products which company offer you ?
How was the performance level of products offered by Company ?
How was your shopping experiences with the company ?
Are the employees of the company co-operative with you ?
Are the facilities of the company is organized ?
Is the company responding in a timely manner?
Company will analysis its customers' satisfaction level by this survey which will be
given by the employees to the customers and ask them to give rank between 1 to 5. On the
basis of total of the rank numbers, Company will get to know about the customers' satisfaction
level whether its Highly satisfied or Less Satisfied or Moderate Satisfied (Bühler and Bick,
2019).
From the customer satisfaction questionnaire, it can be interpret that the sale of the
company with the customers are between 3 to 6 months, services provided by company is fair,
products is good, sales staff is good, price value is good, customer satisfaction level is neutral,
business between company and customers are also neutral and customers are likely to
recommend others to use the company’s products and services.

1.8 Quality Procedures
Quality procedures refers to process of inspecting quality of products and services
offered by company from pre-determined quality standards in order to ensure about the good
quality services and high customers' satisfaction (Berenguer and et.al., 2016).
Quality Procedures for Smartphones are as follows -
SMARTPHONE STRUCTURE AND COMPONENT CHECKING
Here first smartphones' structure and components are being inspect which include the
colour, dimensions, weight, height, logo, speaker, volume, PCB, display, cables, connecting
ports, touch screen, display brightness, charger and its related items etc.
SMARTPHONE SOFTWARE TESTING
After checking the structure and components of the smartphone, next thing which is
being inspect in quality procedures of smartphone is its software. It includes camera, operating
systems, GPS, music and Bluetooth system etc.
SMARTPHONE PERFORMANCE TESTING
After checking the software, hardware and structure of the smartphone, its performance
are being inspect. In the performance testing, Wi-Fi connectivity, third party applications, call
(out-going and incoming), SIM card & memory card recognition and fingerprint & another
sensation etc. are being inspect.
In case, during quality procedures, any kinds of defects are being found out, than it is
returned to the company and ask them to change that particular aspects of the smartphones in
order to not broke the quality standards (Anshari and et.al., 2016).

1.9 Conclusions & Findings
From the above study, it has been summarized that Smartphones are becoming an
integral part of the business as well as the customers. Due to its structure, features and
accessibility, Smartphone industry is becoming one of the most growing industry at global
level. There are various aspects or features which not only attract the adults and youngsters but
also attract the older customers too. For the expansion of the business activities into new
markets, Company is required to take care of the many factors which may affect the business
positively and negatively. It includes the costing of buying and constructing building. Also, it
includes the net taking (revenue) of the various business of the company too. Thus, company
should focus on the cost of the expansion of the business as well as the benefits in case
company become successful in expanding its business. Customers satisfaction is one of the
major factor which company is look upon. If company is able to satisfied its customers, it will
help company to grow more and enhance its brand image. Thus, for the successful business,
Company are required to take care of their customers' needs & wants and try to fulfil them. For
the goodwill of the company and customers' health, Company has to follow quality procedures
which is necessary for the inspection of the quality of the products and services.

References
Books and Journals
Anshari, M., and et.al., 2016. Smartphone habit and behavior in Brunei: Personalization,
gender, and generation gap. Computers in Human Behavior. 64. pp.719-727.
Berenguer, A., and et.al., 2016. Are Smartphones Ubiquitous?: An in-depth survey of
smartphone adoption by seniors. IEEE Consumer Electronics Magazine. 6(1).
pp.104-110.
Bühler, J. and Bick, M., 2019. From text messages to WhatsApp: cultural effects on m-
commerce service adoption in the UK and Russia. International Journal of Mobile
Communications. 17(4). pp.441-464.
De Saulles, M., 2016. The internet of things and business. Routledge.
Gowthami, S. and Kumar, S.V.K., 2016. Impact of smartphone: A pilot study on positive and
negative effects. International Journal of Scientific Engineering and Applied
Science (IJSEAS). 2(3). pp.473-478.
Hubert, M., and et.al., 2017. Acceptance of smartphone‐based mobile shopping: Mobile
benefits, customer characteristics, perceived risks, and the impact of application
context. Psychology & Marketing. 34(2). pp.175-194.
Kamargianni, M. and Matyas, M., 2017. The business ecosystem of mobility-as-a-service.
In transportation research board (Vol. 96). Transportation Research Board.
Molenaar, C., 2016. Why customers would rather have a smartphone than a car: Relationship
retailing as an opportunity. Routledge.
Rahim, A., and et.al., 2016. Factors influencing purchasing intention of smartphone among
university students. Procedia Economics and Finance. 37. pp.245-253.
Sánchez, A. and Carro, B., 2017. Digital Services in the 21st Century: A Strategic and
Business Perspective. John Wiley & Sons.
Shi, X., and et.al., 2018. Consumer loyalty toward smartphone brands: The determining roles
of deliberate inertia and cognitive lock-in. Information & Management. 55(7).
pp.866-876.
Vorley, T. and Williams, N., 2016. Not just dialling it in: Examining cognitive-based
approaches in enterprise education using a smartphone application. Education+
Training. 58(1). pp.45-60.
Online
Deloitte. 2017. [ONLINE]. Available through :
<https://www2.deloitte.com/ch/en/pages/technology-media-and-
telecommunications/articles/mobile-consumer-survey.html>
Eco-Fone Limited Company. 2019. [ONLINE]. Available through
:<https://companycheck.co.uk/company/06993464/ECO-FONE-LIMITED/compan
ies-house-data>
Smartphone sales boom with over-55s. 2017. Available through
<https://www.bbc.com/news/technology-41319684>

APPENDIX
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