D26 for 0 P 4 A B C D E E F G H I J K L M N 1 Based on a survey, In 2017, the IT Strategy team decided to develop a mobile application for the e-commerce store, and the firm launched the mobile app on 1st Jan 2018. 2 Before 2018, smartphone visitors accessed the e-commerce store using the mobile website. 3 Table 5 shows the average monthly visitors to the mobile website and mobile app from 2014 to 2019. 4 (a) Write a formula in cell E15 to compute mobile website visitors' CAGR from 2014 to 2017. 5 6 Table 5 7 Year Mobile Website Mobile App 8 2014 23085 NA 9 9 2015 28001 NA 10 20161 35430 NA 11 2017 45122 NA 12 2018 48219 13500 Sample Answer 13 2019 49000 28000 14 Mobile Website Visitor CAGR during the period 2014 to 2017 25.032% 15 Mobile Website Visitor CAGR during the period 2014 to 2017 25.032% 16 17 Superficially, it looks like the mobile app has not cannibalized the mobile website, this is because the monthly mobile website visitor has grown in 2018 and 2019. 18 However, the comparison of actual visitors in 2018 to 2017 actual visitors is not correct. To find cannibalization, we should compare the actual visitors to the expected visitors. 19 Assume that if the firm did not launch the app, the mobile website user base would have grown at the CAGR rate. 20 (b) Using CAGR computed in E15, write the formula in cells D26 and D27 to calculate the Expected Mobile website visitor in 2018 and 2019, respectively. 21 (c) Compute the percent decline or increase in the mobile website visitors, write a formula in cell E26 and copy to cell E27. (d) In cell F26, Use the IF Function to create a formula to print "Yes" if there is cannibalization; else, the formula should print "No". Copy the formula to cell F27. 2 Hint: If the percent increase is negative then there is cannibalization, else there is no cannibalization. 23 24 Table 6 Sample Answer Expected Mobile Percentage Is there Expected Mobile Percentage is there 25 Year Mobile Website Website visitor Increase cannibalization? Year Mobile Website Website visitor Increase cannibalization? ? 26 2018 48219 2018 48219 56417 - 14.5307% Yes 27 2019 490001 2019 49000 70539 -30.5346% Yes 28 29 Strategy Team is interested in knowing whether the app launch helped increase visitors' number to the e-commerce store. 30 (e) In cell E37, write a formula to compute Total Actual Visitors, copy the formula to cell E38. 31 (f) Compute the percent increase in the Total Actual Visitors as compared to Expected mobile website visitors, write the formula in cell G37 and copy to cell G38. (g) In cell H37, Use the IF Function to create a formula to print "Yes" if the App Launch was beneficial to the firm; else, the formula should print "No". Copy the formula to cell H38. 32 Hint: If the Percent increase is positive, then the launch is beneficial; else, it is not beneficial