Smartphones are multi-purpose computational instrument whose demands have continued to grow as people embrace the latest multimedia features which include songs, videos, gaming, and so on. The project study is focused on UK's reviews and predictions concerned with smartphone market conditions (Anderson, 2012). The study covers relevant and detailed analysis on the UK's mobile market current position in all terms and forecasts to support Eco-fone business. Study also explains pros and cons associated with expansion of Eco-fone business. Further study also contains critical evaluation of respective corporation's products' efficiency and different tasks are performed accordingly.
(a). Comprehensive overview of UK's smartphone market:
In UK, currently all kind of technological changes are accepted by different markets which indicates that UK's market is continuously moving towards technological advancements. Here in this context smartphones and other electronic gadgets are key and fundamental aspect of such technological advancement. Smartphone market is most dynamic and growing sector. In UK's population specially youth is highly attracted by smartphones and covers a large portion of overall smartphone users (Spekman and Davis, 2014). Growth in electronic products market in UK is around 30%. According to the study conducted in UK's markets/sectors by Deloitte, it's been ascertained that smartphones are more generally used: about 44 percent for email and around 34 percent for voice calls.
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Further, around 40percent of working persons are utilizes one of the common app named Whatsapp regularly. Among around 33.5million workforce of UK approx32 million personnel are using mobile and smartphone devices for day to day business workings. Thus, users of smartphone continuously increasing that significantly impacting revenues of smartphone companies by approximately 1.56 billion per annum (Global mobile consumer survey, 2017). In addition, study has shown that around 58% of adults/youth are users of smartphones and this figure is projected to expand by approx 90 percent by 2020. The increase in adult smartphone users obviously indicates that major part of population is using smartphones in their everyday workplace and routine life.
Linear chart of UK's adult smartphone use during period of 2012 to 2017:
Above presented chart shows increasing popularity and use of smartphones among adults in UK. Diagram clearly sates that in 2012 adult users of smartphones was 52% only which has been reached to 62% in year 2013, 70% in year 2014, 76% in year 2015, 81% in year 2016 and 85% in year 2017. Based on Deloitte's 2017 study, the use of adult smartphones stated that approximately 17 percent of population using smartphones around100 times in single day, including age group varies 16years to 75 years. This upward trend in figures shows that this growth in adult smartphone-users will continue in coming period. This scenario points out that smartphone business in UK has great opportunities (Asgharzadeh, Bakouch and Esmaeili, 2013).
Key characteristics or special features that contributes in smartphones popularity among old customers:
As per Deloitte research study, people aged 55 to 75 who are financially strong are preferring to buy premium featured smartphones. It is interesting fact about usage of smartphones that older generation population in UK are adopting smartphones technology quickly. Approx more-than 71percent of individuals belongs to age category of 55-57 years have their own smartphone-devices and are using them (About smartphone feature. 2019). Following are several crucial smartphone features are described which are also main cause of increasing popularity, as follows:
It is quite crucial and essential feature in smartphones which attracts aged users as mostly old customers due to vision problems in eyes prefers to buy a large-screen in mobile phones. Also it is convenient for them to operate a larger screen smartphone in comparison to ordinary mobile phones.
Better sound quality:
It another major feature in smartphones that attracts old-age individuals towards purchasing smartphones. Since latest-range of smartphones comes with latest and innovative technological aspects that makes much easier to old-customers to clearly hear call-voice or sounds. This also includes features which improve sound quality for ear friendly sound (Smith, 2014).
User-friendly and easy interface:
Most of the smartphones are based on android and IOS which provides most attractive and easier interface for operating smartphones. Interface is so easy to understand even for old customers who don't have computer knowledge. It also allow to operate multiple tasks at same moment.
Safety, privacy and other features:
Smartphones not only allow to carry large amount of data but also it provide proper safety and privacy features. Old customers can easily rely on the safety features and privacy options in smartphones.
So, these are several core features of smartphones which are reasons behind growing popularity of smartphone specially in old customers. Consideration of these features in a smartphone business is significant to cover old-customers user group.
Feasibility check of expanding ECO FONE business to Kingston:
Score out of 10
Scores out of 10
Reach to new-customer group- It is one of main advantages of extending business to such a new place. Business has a chance of reaching new/fresh segment of clients. Like the above corporation, attracting more fresh clients can be advantageous to them.
Shortage of cash- It is most fundamental issues that the above-mentioned corporation can encounter if they diversify or expand business in new geographical location: Kingston
Increased market/industry share- Due to expansion of business in new location company's sales and customer also will increase this will ultimately lead to increased market share (Chang, Chen and Zhou, 2019).
Cost of controlling- With expansion in new place another major issue that will rise is additional cost of setting up branch office for establishing proper control over business.
Reduction in external risks: Expanding geographical locations leads to minimisation of risks arising from external sources such competitive effects, inflations etc.
Increased capital funding requirements: Step like this require heavy investment and capital funds which leads to increase in business risk and impacts capital structure (Shaban, 2018).
Based on above reviews, it could be concluded that it would be not appropriate for company to make expansion in Kingston as weighed of disadvantages are higher than advantages.
(a) Monthly costing of loan taken for 15 year amounting £350000:
Loan amount is: £350000
Interest rate or i: 7 percent
Tenure of loan : Fifteen years
EMI of loan (per month) : £ 3127.65
Total interest amount payable: £ 212977
Total payment made against loan: £ 562977
Form above results and information its has been evaluated that cost that will occur in respect to new office building in context of respective company could be £ 562977 if corporation is selecting funding though loan of £ 350000. This cost is aggregate of loan amount and interest payable on loan taken. Company has to make payment of loan by monthly EMI of £ 3127.65 for 180 months to take possession of building and repayment of loan.
(b) 8 well known and famous corporation and financial institutions for obtaining loan in UK:
Business can be financed by taking loans, for which selection and identification of most trusted and reliable banking corporation and financial institution is crucial. In this context following are some major organisations for taking loans for business in UK, as follows:
Efficiency and cost-effectiveness of 2 retail-shops of Eco-Fone corporation:
Respective corporation is operating its key activities and functions into 2 distinct locations having different geographical locations. For assessment of making comparison of effectiveness and efficiencies of these shops, a sample size i.e. 40 has been taken that is futher analysed below:
Mean of samples: £ 100
Standard deviation: 20
Coefficient of variation: Standard deviation / Mean x 100
=> 20/100 x 100
Mean of samples: £ 90
Standard deviation: 40
Coefficient of variation: Standard deviation/ mean x100
=> 40/ 90 x 100
=> 44.44 %
Above outcomes shows Shop first with SD of 20 is less risky as in comparison with Second shop has SD of 40. While COV of Shop 1st is 20% while 2nd Shop's COV is 44.44% which indicates that efficiency of Shop 1st is much more as in comparison with 2nd Shop.
Causes for which application of Poisson Distribution is requisite in context of Eco Fone company:
In statistical terms a Poisson distribution relates to distribution which demonstrates how frequently a specific task or event possible to occur in specified time duration. It mainly applied for independent tasks or events that are occurring at specific intervals within specific timespan (Reynolds, 2017).
In case of respective corporation's scenario, Poisson distribution is most appropriate as in this case there is a specific event i.e. among around 10,000 invoices in a month, probability of more than 3 invoices can return. While normally 2 invoices are usually retuned in a month. Poisson distribution act like a discrete function, which implies that event can be easily measured based on as occurrence or not occurrence. Variable can also assessed by this method in a whole number (Savic and Pedrycz, 2015). In given case this distribution is relevant as given scenario is all about occurrence and non-occurrence of return of 3 invoices in a single month. Also a specific time interval of one month is also provided in given case which is possible only by application of poisson distribution.
Through above discussed study, it has been articulated that smartphones' market in UK is growing rapidly and current business environment is appropriate for establishing Eco-fone business. Analysing marketplace before establishing business is significant for both start-ups and existing business entities. This kind of analysis help to recognise possible pros and cons in relation to new business idea. Also further review of research studies of consulting firms like Deloitte and other corporations is significant to identify potential threats or risks as well as opportunities for business. Also effective application of some statistical methods can help to easily interpret current market situation and to determine possible risk weighted.
Anderson, W. P., 2012. Public policy in a cross-border economic region. International Journal of Public Sector Management. 25(6/7). pp.492-499.
Asgharzadeh, A., Bakouch, H. S. and Esmaeili, L., 2013. Pareto Poisson–Lindley distribution with applications. Journal of Applied Statistics. 40(8). pp.1717-1734.
Chang, Y. F., Chen, C. S. and Zhou, H., 2019. Smart phone for mobile commerce. Computer Standards & Interfaces. 31(4). pp.740-747.
Reynolds, P .D., 2017. New and small firms in expanding markets. Small business economics. 9(1). pp.79-84.
Savic, D. A. and Pedrycz, W., 2015. Evaluation of fuzzy linear regression models. Fuzzy sets and systems. 39(1). pp.51-63.
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