Groupon

2879 Words12 Pages
Transnational Management: Applied to the Case of
Groupon

Maastricht University
School of Business and Economics
Maastricht, Dec. 4th, 2012

Course: Global Business

Table of contents

Page

1. Introduction

2

2. Business model

3

3. Organizational Structure

4

4. Groupon’s corporate strategy

5

5. Groupons global strategy

6

6. Groupon’s entry to China

7

7. An Evolving Role

10

8. Conclusion

11

9. References

12

10. Appendix

13

1. Introduction
Groupon is a deal-of-the day Internet start-up company that was launched in 2008 in Chicago.
The website offers discounted deals for local as well as national companies. Now operating in more than 150 markets as diverse as the
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1969).

4. Groupon’s corporate strategy
As Groupon is established in many countries of the world, a global strategy has to be pursued on the one hand. This leads to a gain in brand equity, brand awareness and global efficiency.
On the other hand Groupon offers national as well as local deals, which caused the business to act locally responsive as well. Groupon, for this reason, can be considered transnational, as the company acts “more responsive to local needs while capturing the benefits of global efficiency” (Bartlett and Beamish, 2008, p13). Today’s MNEs compete in highly complex, diverse and constantly changing business environments. This is due to globalization of markets as well as acceleration of product and technology life cycles. Most importantly however is the intensification of global competition for Groupon. Most online services are easy to imitate. Therefore it has been of utmost importance that Groupon’s managers take the right actions and develop appropriate strategies. Groupon has access to highly educated international managers that sense and interpret complex and dynamic environmental changes.
These managers have developed and integrated multiple strategic capabilities in order to cope with today’s business world. As it was very hard for Groupon to enter foreign markets,
Groupon identified several companies that were interested in forming joint ventures. An important part of their global expansion strategy that

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