problem: Stars Inc. is a large clothing corporation that specializes in reselling clothes worn by celebrities. The company's four Web sites 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 on the success of the four Web sites follows:
|
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)
|
20min.
|
1 hr.
|
20 min.
|
50min.
|
|
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
|
You decide that maintaining four separate Web sites is expensive and adds little business value. You want to propose consolidating to one Web site. Create a report detailing the business value gained by consolidating to a single Web site, be sure to include the following:
- Recommendation for consolidation
- Web site profitability analysis
- Potential ethical issues facing an e-business
- Potential security issues facing an e-business