This report concerns Eco-Fone Smartphones that sells smartphones and accessories from two shops. It was established in 2014 and had been having been experiencing an increase in its net profits annually. Until recently, the management of Eco-Fone Smartphones observed some recent trends such as an increase in sales among older customers and significant difference in net takings from the two shops. Information concerning different tasks will be analyzed and the details presented in charts for a more natural understanding of how Eco-Fine Smartphones has performed successfully in management over the years. The project focuses on how the control of Eco-Fone Smartphones will integrate the steady increase of market forces with a steady supply of smartphones. They will have to come up with different strategies that they will employ in the market to ensure customer satisfaction.
The invention of Harrods, a navigation app that has dramatically reduced on time wasted on locating premises has greatly hence facilitated business (Anon., 2017). Consumers can identify assumptions that offer certain goods and services. This app has promoted customer and seller interaction, therefore, expanding the market for buyers and sellers. More business has opted to enroll in Harrods app hence increasing sales and their net profits. Harrods app has fastened transactions since many business outlets are located without using signs and symbols. There is a more significant connection between management and clients. The administration can prepare themselves in advance to meet the large market that is channeled by Harrods. Control ensures a steady supply of goods and services to their customers which builds a positive brand image leading to higher profits.
The entertainment sector has experienced an increase in customers because individuals easily locate them. Customers don’t have to struggle to get services such as cinemas. They can figure out the location of the premises in advance and enjoy the services offered to them by them. The management is also able to track down their clients and inform them of their whereabouts
Travelling has also been made easier especially at the airports since people can easily trace their luggage making it manageable to travel with lots of commodities which could be for resale hence generating revenues. Travelers are also able to track the position of airports especially when they are in foreign nations. This has dramatically facilitated air transport since travelers can keep time and access their flights at the right time.
International conferences are easily manageable because foreigners can easily track venues and hotels. Those with exhibitions can find more about their location and space without having to pass through channels for assistance. Harold app has provided a platform for fast communication of businesses and their management team. It is imperative for investors to be equipped with smooth operations when they are in foreign nations. The ease of doing business will make them establish an ideal business venture, therefore, generating income to other countries.
Recently there has been an increase in smartphone sales by older customers. This is due to some features that are conducive to older people. The launch of Samsung Galaxy S10 that has the most significant phone display reflected on the increase in its sales by the more former customers. The large display indeed offers a comfortable view that makes it easier for more former customers to operate the phone (Kelion, 2019). Due to the importance of accessing emails at your convenience, the older people who tend to have important meetings at times need reminders. This is mostly channeled through their email addresses. Sometimes they tend to have difficulties locating premises. With the current smartphones having a much better navigation system, it compels the older people to own one who assists them in determining their position (Orlov, 2015) and in emergencies.
The older people sometimes need to take a rest and enjoy moments with their loved ones and family members. With continuous improvements on camera by different smartphone manufacturers, they tend to attract older customers who tend to be drawn to quality pictures. Quality videos from quality cameras make more former customers purchase quality smartphones. The introduction of facial expressions on smartphones has also attracted the older customers who nowadays dislike fiddling their fingers to turn on the phone. The more former customers prefer simple actions such as using fingerprints or their facial expressions to turn on their smartphones.
Introduction of specific applications such as applications for ordering taxi services which are very convenient to them. Smartphones usually offer more natural ways of payment which has made the older people adopt them. They can easily pay some of their expenses without having to go to counters. Smartphones are far much more comfortable to carry around. They are much smaller in size and sometimes it is hard to notice when someone has brought one in the pocket. Change is inevitable, and people have to cope with it. In modern society, there has emerged better phones that are smartphones. The older have opted to use them for their convenience.
Smartphones offer quality audio and visuals. The older customers tend to experience hearing difficulties which the smartphones are good with quality sound. This favors more former customers to opt for smartphones to the original analog phones that were preferred. So many time the older customers tend to be forgetful. They might end up not recalling to attend an event, and due to the reminder feature in smartphones, they will be reminded about a game or even necessary appointments with the doctor.
The storage capacity of smartphones enables users to be able to back up important documents and even other vital particulars. The older customers who most of them have so many materials which can be accommodated in the smartphones. A single item which can easily be carried compared to a bunch of papers that can easily get lost or vandalized due to insecurity. Smartphones have facilitated the storage of this essential particulars especially details of the older customers.
Pros and cons method
|Should we expand our business to Kingston?
|Less labor force
Eco-Fone has been thriving lately due to high sales. The management wishes to expand its operations from their two shops across the border to Kingston. They will have to consider certain factors under the pros and cons method before expanding on their activities. Expanding their operations means they will incur expenses. They can obtain loans which they can repay letter with interest, and this will affect their incomes. More human resources will be needed hence more payments for paying workers. Establishment of other premises will lead to much more expenses, and this will provide a basis for the cons.
Fortunately, by expanding their operations, they will make higher sales leading to more profits. The market forces will indeed increase, and this will provide a basis for the pros. Eventually, they will catch up and be established because of financial assistance provided in the portfolio by their assets leading to their expansion in Kingston (Decisions-pros and cons, 2017).
SUMMARY OF QUESTIONNAIRE FINDINGS
According to the questionnaire, the last time that someone purchased a product can be determined since there are more sales at the end of the year compared to the beginning. It is observed that each time there are sales due to the broad market available.
Eco-Fone doesn’t have long term users of its smartphones. Due to competition and ever-changing technology, people shift from one product to another. Eco-Fone, therefore, faces stiff competition and should consider differentiating there smartphones from other brands. They should target a broader market to offer counter competition and not only focus on the increase in sales by older customers.
Eco-Fone should also work on their customer service. The management team ought to provide individuals who will portray a positive brand image to ensure customer satisfaction. They should continue offering quality products and increase their sales staff to be able to capture a broader market. Their unit price should not be much higher than the standard amount of their competitors.
Due to their quality products and excellent customer relationship, they have been able to achieve customer satisfaction to their customers. This has provided a good brand image creating awareness among the customers who are likely to do business with them again. Eventually, the satisfied customers engage other customers and recommend them to the quality smartphones provided by Eco-Fone leading to an increase in their sales and net profit.
Eco-Fone can improve on their package. They should offer an attractive package for their smartphones. This will eventually attract other customers due to differentiation.
Poisson distribution is very appropriate for Eco-Fone distribution. With a large number of buyers, there is always a possibility of credit default by a customer. The management should be able to forecast on their sales and the number of customers at particular times. This will assist them in maximizing profits rather than relying on setback by the customers who default on their products.
Through the Poisson distribution, they will be able to hire temporary workers to meet the extra demand by their consumers during the high peak seasons. When the market is experiencing losses, they can retrench the additional temporary workers and be able to work on a fixed budget. Therefore, avoiding loses. Poisson distribution is very critical and can assist firms in keeping earning profits when used well by the management team. Moreover, it ensures that resources are efficiently used for the satisfaction of customers to enhance a positive brand image (Stephanie, 2013).
In conclusion, Eco-Fone needs to consider the differentiation of its products to face the stiff completion of smartphones. Entailing the Poisson distribution will only assist them in maintaining their profits levels. If they want to capture a broader market in foreign countries, the management should work on proper packaging. It will indeed portray a preference brand since they offer quality products.
Anon., 2017. Digital Predictions 2017. The Deloitte Consumer Review, pp. 19-20.
Decisions-pros and cons. 2017. [Film] Directed by Joshua Watkins. s.l.: s.n.
Kelion, L., 2019. Samsung reveals Galaxy Fold and S10 5G. BBC NEWS.
Orlov, L., 2015. Aging in place technology watch. [Online]
Available at: https://www.ageinplacetech.com/blog/smartphone-usage-older-adults-why[Accessed 17 March 2019].
Stephanie, 2013. Statistics How To.