Focus mostly on how and why consolidation in this case is proven to be beneficial and website profitability analysis.
K 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 is displayed in the table below. You decide that maintaining four websites is expensive and adds little business value. You 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. Website 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 K 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 is displayed in the table below. You decide that maintaining four websites is expensive and adds little business value. You 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. Website 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
