Groupon Business Analysis

Groupon an American world wide E-commerce market place was launched in 2008. It connects millions of subscribers with local merchants by offer travel, goods, and services in more than 28 countries.

The brilliance of the concept is that while engaging the consumers to stay on their friends and family about the deals, they are simultaneously advertising the app and concept. Groupon is basically acting as a bridge of communication between the buyer and the seller, as the consumers may be unaware of the seller’s very existence.

Groupon’s primary strategy for growth is sales and marketing. They use complex analytics to segment customers not only by city but more specifically, by neighborhood. They target these customers with marketing that is close to home and relevant to their demographic. They provide local businesses with instant access to droves of local customers and in exchange they split the revenue from the sales of “groupons” with the local businesses. Groupon’s market name recognition and vast data warehouses containing intimate customer data give them an advantage over competitors. They use this data to buy Google Ad Words that will attract the most customers and provide an

Groupon is a deal of-the-day site giving top notch rebates on products or administrations for occupants of a specific market. This deal as of now exists in more than 150 urban communities in North America and in more than 100 around the world. Essentially, Groupon highlights an area particular coupon every day, and the offer just winds up plainly substantial if a specific number of individuals additionally buy the rebate (subsequently the name-a straightforward blend of the words "Amass Coupon").

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

What is the one four-letter word that every consumer loves to hear? “Deal”. Plain and simple, consumers are always looking for a deal. Whether it be for dining and entertainment, clothing or groceries, individuals will scour the aisles or the local paper for any sort of penny saving technique they can find. Enter Groupon. Groupon is an innovative technology that connects those frugal individuals with the best deals and the merchants that supply it. Thus expanding the merchant’s business and the consumer’s

Database is the core for the website. It is a little bit like a heart for a man. A database is a collection of information that is organized so that it can easily be accessed, managed, and updated. In one view, databases can be classified according to types of content: bibliographic, full-text, numeric, and images. In Groupon, the information and data that related about two big parts are recorded by database; these two parts are Groupon website and their customers. In the side of Groupon website, first, it puts many kinds of products on its website; then do some check when customer’s requirements are set up, just like check if this

Verizon Communications, Inc. is based in New York City, incorporated in Delaware, and was formed on June 30, 2000. Verizon allowed for same sex partners of current employees in states where same sex marriage was legal, six months to finalize their marriage before they eliminate future benefits for their partner. They wanted to give an equal opportunity for lesbian, gay, bisexual, and transgender employees to receive benefits for their partners, like their straight co-workers. The policy that Verizon ended up using was that couples that are lesbian, gay, bisexual, and transgender would receive benefits for health insurance if they go through the legal marriage process in their respective state.

The main purpose for Groupon is to get the consumer the best local deal possible. With the rapid expansion of subscribers throughout the United States and the World accounting for geographical differences is vital and therefore a focus on the regional area its user came from was needed. Groupon divided its subscribers into local metro sectors initially which then was furthered by dividing the metro groups into smaller groups based on zip code (Sutton). Groupon ultimately wants to identify where its users live, work, and shop to give the best deals within their individual users operating region.

Here is how it works: A business offers a deep discount for its good/service, for example, a restaurant offered $40 value meals for the price of $20 via Groupon. The customer buys the voucher on Groupon for $20, and then later redeems it at the restaurant at the value of $40. Groupon makes money by charging a marketing fee for advertising and promoting their offers. In most cases, that fee is a percentage of the revenue generated by selling on Groupon, normally about 30-50% commission. Local business owners starting to sign up as part of their marketing strategy and spread the words to other locals. By the end of 2008, Groupon had around 300 employees and grew to more than 10,000 employees today. Groupon is a pioneer and leader in Daily deal Niche market, growing from 5 cities at end of 2008 to 150 domestic markets and over

Groupon described itself as “a local commerce marketplace that connects merchants to consumers by offering goods and services at a discount.” It is through cooperation with all businesses, companies, hotels, products, and finally to provide discount services to consumers, and to lower the amount of profit to gain tremendous customer. The company used e-mail to disseminate deals. And these deals were based on individual customer preferences which collected through the company’s technology and scale.

This article from the Economist discusses the Groupon, which is a global e-commerce marketplace that offers online coupons for bargains at shops and restaurants. Nowadays, more and more people use Groupon to get some online discounts, and it is very helpful for people to buy a product very cheaply in order to save money. It is undeniable that Groupon created a new market and it is definitely the “first-mover”. According to what we have learned in our international business class, the “Early mover” has many advantages. The “daily deal” idea attracted many customers, and helped Groupon gain the market power and customer loyalty. Because of the first-mover advantage, Groupon had many preemptive opportunities and it developed rapidly. Groupon’s

The recession has increased the importance of spending money wisely, in which people whom are attracted to deals are also attracted to Groupon. The typical Groupon user is an 18 to 34 year old woman, whom relies heavily on social media such as e-mail and smartphone apps. This works out well for Groupon because the whole concept relies on the use of those social media channels. Also, Groupon is able to use variables such as, gender, location, and buying history to match deals with the customers. The combination of all of these influences allows Groupon to provide offers that are best suited for the respected customer, which is beneficial to the customer and the vendor.

Groupon has provided value to the business. One of their key benefits is to gain new customers by their bulk discounts. After using Groupon customers learn its benefits and will continue using it due to its discount, not only that if the business provides quality

TWOS is a planning tool used by managers to strategize and position their business in the order that assures sustained positive performance. TOWS is simply an inverted SWOT common used on analyzing performance and position of businesses. while SWOT begins with strength, weakness, opportunity and then threats faced by a business, TOWS matrix of business analysis begins with threats, opportunities, weaknesses then strengths faced by a business in that order. Under TOWS matrix of business analysis, threats and opportunities categorize as external environment factors that affect the business in particular ways (Koontz and Weihrich 112). Strengths and weaknesses usually categorize under internal environment that impact a business in particular ways.