Business Model Canvas

940 Words4 Pages
Describe the business using the BMC

• Customer segments

From the map above, the organisation can focus on their customers’ area, which is mass markets model for customer segments. Groupon Company (2013) states that we have 39.5 million customers in the world, and they also will recommend friends and family to join in Groupon deal activities. Therefore, the public who includes women, student and singles will create a lager number of value for this organisation. Furthermore, Gil (2013) claims that Groupon business model are suit to modern consumers. It seems that the most modern consumers love to spend money for quality life.

• Value propositions

The price and customization will determine the value propositions for
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There are a good explain about key partnership. From Swisher (2011) reports that Groupon is talking with Chinese Internet giant Tencent building a partnership to accelerate developing Asian markets. In terms of Tencent has vast customer base more than other company in China market. However, after successful entry in China, Groupon suffer many local competitions, so they need to rely on more and more local merchants to establish new partnerships.
Cost Structure
The costs of Groupon have established development of its the advertising costs, labour costs, website platform, IT operations and other costs. However, the Groupon Company has identified a problem about the long-term profitability, so a major problem is raising costs of the local merchants. Furthermore the advertising cost will very expensive, therefore Groupon need to invest a larger number of fund into developing advertisement. Groupon also needs to invest in new researcher who helps this company to develop knowledge of local market.

Business Model Pattern
The business model pattern of Groupon Company is multi-sided platform. Hagiu (2007) reports that multi-sided platform is one of business model patterns, which have two or more interdependent groups of consumers. Typically, the Groupon Company model is win-win situation between customers and local merchants. The company provider a platform to help local merchants attract more customers, and then many
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