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HWE Accessories produces accessories for cell phones, such as cases and screen covers. Most of the current sales occur in retail stores. The existing website for HWE Accessories is informational only. HWE Accessories would like to implement an entirely new website, allowing customers to browse inventory, compare items, and make purchases. HWE Accessories is a relatively small company without an internal IT department.

As IT manager, you will develop a business plan for the new HWE Accessories website throughout this course. The first step is preparing the business case. Write a 3- to 4-page business case for the new HWE Accessories website. Include the following: The problem statement, analysis of the situation, cost-benefit analysis, preliminary feasibility study, total cost of ownership (TCO), return on investment (ROI), solution options, and recommendations.

Paper For Above instruction

The rapid growth of e-commerce has transformed the retail landscape, compelling small businesses like HWE Accessories to adapt to digital trends to stay competitive. Currently, HWE's sales are confined mainly to retail stores with an informational website that does not facilitate online shopping or comprehensive customer engagement. This limitation constrains sales growth and customer reach, necessitating an upgrade to a dynamic, user-friendly e-commerce platform. This business case explores the need for a new website, analyzing its potential benefits, feasibility, costs, and strategic options to maximize HWE's market presence and profitability.

The problem statement indicates that HWE Accessories’ current online presence is solely informational, which limits customer interaction and hampers sales expansion. The absence of e-commerce capabilities prevents the company from capturing online market share and diminishes competitiveness. Additionally, as consumer behavior shifts towards online shopping, HWE risks losing revenue to competitors with digital storefronts. The company’s small size and lack of an internal IT team further complicate this transition, emphasizing the need for a well-planned, cost-effective solution that can be managed externally or with minimal in-house IT resources.

The analysis of the situation reveals that most competitors already possess integrated e-commerce platforms, enhancing customer engagement and simplifying purchase processes. Furthermore, digital channels provide valuable customer data, enabling targeted marketing and inventory management, which are currently unexploited by HWE. The company’s existing website serves only an informational purpose, which limits customer retention and loyalty opportunities. With mobile device usage on the rise, having a mobile-compatible, online shopping portal is essential for expanding sales and customer base. The current business environment mandates digital adaptation to avoid falling behind industry standards.

The cost-benefit analysis indicates that investing in a new e-commerce website entails costs related to platform development, hosting, security, and ongoing maintenance. Estimated initial costs include website design, development, and integration of inventory management systems, totaling approximately $20,000 to $30,000. Ongoing expenses such as hosting, security, and updates may amount to $5,000 annually. However, the benefits—potentially doubling or tripling sales, expanding customer reach nationwide, reducing reliance on retail store sales, and improving brand visibility—far outweigh these costs. Increased sales revenue, improved customer engagement, and operational efficiencies are expected to generate significant returns over time.

A preliminary feasibility study suggests that the project is technically feasible given available solutions like hosted e-commerce platforms and third-party development services suitable for small businesses. Operationally, HWE can outsource website management or train a minimal team with external support. Financial feasibility appears favorable considering the projected sales increase and cost savings. Legal and security considerations, including PCI compliance and data privacy, can be managed with reputable hosting providers and security measures, ensuring the project’s viability.

The total cost of ownership (TCO) incorporates initial development costs, ongoing hosting, security, updates, and customer support. Based on estimates, the TCO over three years would approximate $50,000, accounting for setup, maintenance, and potential scaling needs. This investment provides a scalable platform that supports future growth, product expansion, and marketing strategies, contributing to long-term profitability.

The return on investment (ROI) is calculated based on increased sales, reduced overhead, and improved customer loyalty. If HWE can increase online sales by 50%, translating to an additional $100,000 annually, and reduce operational costs by automating inventory and order management, the ROI could be realized within the first 18-24 months. Detailed calculations project a break-even point between 12 to 18 months, after which the continued growth adds to profit margins.

In considering solution options, three main pathways emerge: a custom-built website with tailored features, a pre-built e-commerce platform like Shopify or WooCommerce, or a hybrid approach combining specific customizations with a hosted platform. The most feasible for HWE, given resource constraints and small operational scale, is adopting a hosted platform with customization options, which offers lower upfront costs, ease of management, and scalability. Custom-built solutions provide flexibility but are costlier and require more technical expertise, which HWE lacks internally.

Recommendations include selecting a reputable hosted e-commerce platform such as Shopify or BigCommerce, which offers security, scalability, and integration with payment gateways. Outsourcing the development and ongoing management to experienced vendors minimizes operational risks and ensures quick deployment. Additionally, HWE should invest in digital marketing strategies, such as social media and online advertising, to maximize the platform’s reach. Training staff on platform management and customer service will be essential to ensure smooth operations. By adopting an affordable, scalable e-commerce solution, HWE can capitalize on the growing online market, enhance customer experience, and sustain competitive advantage.

References

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