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. 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. Assume that if the firm did not launch the app, the mobile website user base would have grown at the CAGR rate. (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. (c) Compute the percent decline or increase in the mobile
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.
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.
Assume that if the firm did not launch the app, the mobile website user base would have grown at the CAGR rate.
(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.
(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.
Hint: If the percent increase is negative then there is cannibalization, else there is no cannibalization.
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