Create a report detailing the business value gained

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Reference no: EM131376719

Analyzing Websites Stars Inc. is a large clothing corporation that specializes in reselling clothes worn by celebrities. The company's four websites generate 75 percent of its sales. The remaining 25 percent of sales occur directly through the company's warehouse. You have recently been hired as the director of sales.

The only information you can find about the success of the four websites follows: You decide that maintaining four separate websites is expensive and adds little business value.

You want to propose consolidating to one site. Create a report detailing the business value gained by consolidating to a single website, along with your recommendation for consolidation. Be sure to include your website profitability analysis.

Assume that at a minimum 10 percent of hits result in a sale, at an average 30 percent of hits result in a sale, and at a maximum 60 percent of hits result in a sale.

Web site

Classic

Contemporary

New Age

Traditional

Traffic analysis

5,000 hits/day

200 hits/day

10,000 hits/day

1,000 hits/day

Stickiness (average)

20 minutes

1 hour

20 minutes

50 minutes

Number of abandoned shopping carts

400/day

0/day

5,000/day

200/day

Number of unique visitors

2,000/day

100/day

8,000/day

200/day

Number of identified visitors

3,000/day

100/day

2,000/day

800/day

Average revenue per sale

$1,000

$1,000

$50

$1,300

Reference no: EM131376719

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