Business Model Canvas

Groupon is a deal based business that brings customers discounted deals from the businesses. As a result of massive success and the growing competition, the business is faced with the option of either selling to Google or developing an effective marketing strategy for continuing its own. In the due context, the underlying report proposes a marketing plan for successfully dealing with the market challenges (Chatterjee, O”Keeffe, and Streiff, 2012).

It needs to be a specific group of customers. Sometimes using stereotype images can help to describe a group, such as the “soccer mom.”

| Customer segments:3.12-B2C: connecting people with people, everywhere permitted (68)3.13-B2B: marketers, free channels; advertisers with budget, solutions to audience; developers with resource, offer platform(69)

Groupon is an internet website company focused on generating revenue by utilizing relationships with merchants to provide consumers with discounts on select items. The goal of the discounted vouchers is to drive additional consumer store traffic and generate revenue for merchants which are shared with Groupon via a predetermined contractual percentage. Groupon generates visibility and exposure with email and social networking to increase consumer spending at specific merchants. Groupon has many features from personalization of product offerings to specific demographics and target segments. In addition, a more defined value proposition allowing merchants an opportunity to showcase their own product offerings on

Andrew Mason, Founder & CEO of Groupon, had a big idea, but was not aware how massive it could grow. Before Groupon, Mason begun a website called ThePoint.org as a site for collective action, to get groups of people together to solve public and social issues. It wasn’t as effective as he projected, and so started to think of how he could take the group approach of ThePoint.org and turn it into a business channel. Mason believed the Internet had potential to change how people discover and buy from local businesses. That’s when Andrew Mason came up with the excellent concept for Groupon. “Part of Groupon’s success is the simplicity of its business model…” (Kerin & Hartley, p. 110) Groupon offers “Deal of the Day” coupons from local and nationwide

The premise is simple -- companies get free coupon advertising without paying any upfront costs. Merchants sign up and agree to certain promotional limits, and Groupon does the rest.

Before Groupon was invested, there was company named The Point that was founded by Andrew Mason and it showed poorly which led failure. The purpose for The Point was to improve the online fundraising experience for businesses’ website but people were hesitant to contribute money to causes if they didn’t think the money would make a difference for the company but it failed due to not enough traffic into their website.

Groupon is a real deal industry that operates within the Electronic commerce also referred to as e-commerce is a module of business that employs computer networks, namely the internet to trade and to sell and buy. At its essence it is an industry that uses technology and the internet to conduct business. Moreover, the e-commerce industry may employ online shopping where customers can use internet access to shop and trade between businesses or between customers and businesses. Groupon is a geographically diversified publicly traded company that operates based off of the ecommerce sale of the day model. This industry business model caters to customers shopping for deals and employs the means of using marketing, and cost saving strategies to entice potential clients by offering discounted coupons to potential clients for savings at various groups. There are discretionary concerns that are notably present for companies that operate in this industry, namely the fact that in a weak economic environment people are less likely to spend money on memberships at clubs and eating out at premier places.

Groupon is valued at 5 billion dollars. It makes money through deals with businesses individually. Groupon doesn’t make money until users access their website and use the coupons at the stores. This is as Groupon states, “we don’t make money until you make money”. Groupon ranges in profit from deals as for each deal they reach an agreement, they make from $2000 on the lower ends, to even $45000. We cannot be charging businesses as much as Groupon is because we are a new start up to this industry. We have to gather a set user base followed by deals that businesses will want to accept as we are a small start-up trying to attack the bigger

Business models have a huge impact on how an organizations operate. It is crucial that an organization chose a business model before inception in order to succeed. Basically, business models have become the new basis of competition, replacing product features and benefits as the playing field on which companies emerge as dominant or laggards (Plantes, 2013).

As Groupon is established in many countries of the world, a global strategy has to be pursued

Groupon is a deal-of-the-day website that is localized to major geographic markets worldwide. Launched in November 2008, the first market for Groupon was Chicago, followed soon thereafter by Boston, New York City, and Toronto. Groupon has over 50 million subscribers across 300 cities in more than 40 countries. The idea for Groupon was created by Andrew Mason who is currently the company’s CEO. [update]Groupon serves more than 150 markets in North America and 100 markets in Europe, Asia and South America and has amassed 60 million registered users. The growth in the future is likely to be at a slower pace, primarily because the company is already one of the largest in the local deals space.

In my opinion Groupon is not a ready-to-go solution to the problem of low marketing budgets of many local merchants. If Groupon is good

With the internet technology, everyone can stay at home for online shopping. What’s more, if you can enjoy daily discounts with all the information, home delivery and 24-hours daily operation, that’s all can be found by buying Groupon. Groupon, the company has successfully captured millions of online consumers throughout the world. The marketing strategy of Groupon captures the consumer behavior. Consumer buying behavior, defined as... “The buying behavior of final consumers, individual and households who buy goods and services for personal”.Groupon consumers mainly responses to:

The company can not sustain in the competitive environment without undergoing change in its strategy. Therefore, company has to rebuild its strategy around the profitable consumer segment. The company is required to make marketing initiatives concerning the interest, awareness and perceived value of the consumer. Thus, identifying the consumer groups of high worth can bring huge profits and revenue for TFC (Stahl, 2007).