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.
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