Groupon Executive Summary

Customers of Groupon are defined as both suppliers and end customers. It is apparent that Groupon is very weak in retaining customers. In the case of suppliers, the low switching costs and less than impressive effect Groupon provides in increasing customer base causes suppliers to switch to competitors and leave Groupon’s management. As mentioned in the SWOT analysis, many merchants cited that employing Groupon as a local advertising tool is ineffective, expensive and risky. In the case of end customers, similarly, low switching costs and lack of incentives to continue using Groupon does not allow Groupon to tap on a larger, more loyal customer base when doing their marketing. It takes more to capture a new customer than retaining customer, as seen where costs is higher in attracting new customers and lesser value earned. With the misalignment between customer and Groupon’s needs, Groupon has to look into the management of these customers to improve their value provided for

The project Groupon was launched in the year 2008. The idea was launched for dealing with the already existing business The Point that was a platform for starting and pledging a campaign. Andrew Mason, the CEO of the company, started a group for making it more profitable as well as easier to manage a business in comparison with The Point.

Groupon targeted consumers with emails, and social media exposure such as Twitter and Facebook. Advertising relied on word of mouth from friends and families, and referral vouchers. Groupon also engaged in marketing campaigns related to gimmick consumer challenges to drive activity in an attempt to increase email subscribers. The positives of Groupon to the consumer were the perception that products and services were being acquired and utilized for a discounted price. The perception that a consumer was receiving a discounted deal was very

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

Groupon, Inc. (“Groupon”) is a company that specializes in local commerce. It has relationships with companies on a global scale and alerts consumers on the hottest deals with respect to shopping for various products, travel destinations, and popular spots, goods and services that a city has to offer. The stock ticker for the company on the NASDAQ exchange is “GRPN.” The company is listed under the sector ‘Technology’ and industry ‘Internet Information Providers.’ It started off as ‘ThePoint.com, Inc.’ but in October 2008 it changed its name to ‘Groupon, Inc.” Groupon was founded in 2008 by the now ousted CEO Andrew Mason. The current CEO is Eric Lefkofsky who initially invested $1,000,000 toward the development of the company. The Chief

The three problematic areas that Groupon will face in its future are use and repeat purchases, managing its growth, and high levels of competition. For some of us we by our coupons months in advance and forget to use them which often leaves us dissatisfied about the purchase. Still with its lack of customer loyalty new subscribers are flocking to the website, which has created a demand for continuous expansion of the company’s infrastructure as well as goods and services that it offers. Moreover, the inundation of mobile devices has created some competition. Now anyone with a smartphone can save money on the spot. This has leveraged the competition against Groupon. For example will shopping at Kohls I used a 20% off coupon I found on my phone

Andrew and his partner, Eric Lefkofsky came up with another company and created Groupon, which launched in November 2008 where it first started in Chicago. Eric provided Andrew $1 million in “seed money” to drop out of school and got Groupon started because Eric developed the idea. Groupon’s first deal was to buy two pizzas for the price of one in a restaurant on first floor of the building where Groupon started.

In their home page, it divided into four parts. At the top of the home page, it is website navigation. The content is: Home, Local, Goods, Getaways, Clearance, Coupons, Beauty week. In the middle of the home page, there are “Recommended for you” and “You recently viewed deals”. In “Recommended for you”, the designer puts 3-4 products, including every product’s picture, name, and price. So the customer can see them clearly at the first time. In some extent, it appeals customer to click them to next page that has detailed information. In “You recently viewed deals”. Groupon puts some things that you searched recently. It is very convenient for customers to find the searching history. The next big part in middle of the home page is many kinds of deals. For example: spa deals, good for kids deals, rainy day deals, outdoor deals, food deals and so on. We all know Groupon is a big deals website. This structure can show its advantage totally. Customers can find and view their focus directly. At the bottom of the home page, it shows regular content: “connect”, “about us”, “need

The Verizon Communication Company deals with the sale of products like mobile and fixed telephone and offers broadband wireless internet services in America. It was founded in 1984 as Bell Atlantic and later changed the name to Verizon Company after merging with GTE in 2000 (Sbeit, 2008).

Groupon creates value through the low costs they offer additionally, through the convenience and the extensive variety of items they provide. Groupons initial value proposition was to enable local organizations to present individuals to their businesses, in this manner enabling organizations to gain future potential customers. The greater part of their income relies upon the quantity of items or deals they sell. Groupon additionally, makes incomes from organizations by means of membership expenses. Moreover, they get a little offer of income from organizations that utilization Groupon's advertisement space. I most likely would not utilize Groupon as an entrepreneur despite the fact that I believe Groupon's plan of action works exceptionally

Groupon is a deal-of-the day Internet start-up company that was launched in 2008 in Chicago.

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.

I believe that Groupon has become successful for many different reasons. First of all, Groupon was the first to transport the traditional “Coupon clipping” to the online world. This opened many opportunities. It was something new, exciting to consumers that they hadn´t seen in this way. So Groupon had a first mover advantage even though they only connected already existing ideas and technologies in a new way. By being online Groupon could reach many, possibly millions, of people at once. This was a strong argument when Groupon talked to local merchants. As most of these merchants did not have an extensive marketing budget and were not necessarily familiar with new

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:

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.