Groupon Technology Essay

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).

Groupon’s business model is whereby first, a merchant signs up with Groupon. Second, Groupon will feature the deal and decide which deals are featured in a ZIP code area. Thirdly, the deal will reach critical mass which will lead to customers signing with Groupon. Fourthly, the customers will pay Groupon if they are interested in the deal or promotion and after paying, they can redeem the coupon at the merchant. Fifthly, Groupon will pay the merchant its’ share whereby the payments are spread out in 3 installments over lifecycle of deal, which also means that Groupon will have a negative working capital.

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

Fletcher Guitars, a guitar-producing company based out of Los Angeles, is interested in increasing production within their Spanish sister company Guitarras Dominguez. The CEO of Fletcher Guitars decided to send Adam Wainwright, a potential high end manager in the company, to Spain to influence the increase production. His task is to convince the owner and founder of the sister company, Salvador Dominguez, that they need to increase their production to meet the standards of the rising demand in Latin music. However, the problem is that Salvador’s company places quality over quantity in everything

We talked on the phone yesterday and you suggested that I should reach you via e-mail.

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.

The fact that the offers “can easily become viral, and its daily deals spread quickly through email” (Gil, 2016) shows how Groupon utilizes technology to spread the deals quickly throughout their list of subscribers. The utilization of email to contact subscribers, to the mobile aps, and e-marketing, Groupon uses technology to its benefit. One third of all subscriber’s purchases is completed by using the mobile application of the Groupon platform. Groupon continues to “heavily invest in technology, including through acquisitions”. (Wheelan, page 11-4) Groupon has developed two applications geared toward the mobile user, “I’m hungry” and “I’m bored”. The applications locate the closest deals to the mobile user for food and entertainment using the geo-graphic location functions of the smartphone. They use technology in their database as well to reward users with Groupon Rewards. The loyalty program tracks the credit card on file with their system, and when a certain amount is reached, a reward is locked for a future

Groupon should build on its relationship with thousands of businesses to offer tools that will provide value to the business while at the same time, deeply integrating with Groupon itself. Since Groupon positions itself as being able to unlock thousands of unused capacity for a business, it should sell a suite of software services that will allow businesses to manage bookings, keep track of unused capacity and perform business analytics. Groupon would then be able to directly integrate their business model into this product by allowing businesses to offer Groupon coupons for unused space with a single click.

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

Groupon is an advertising platform that is largely geared towards serving local markets. Businesses can use Groupon to promote their own discounts (vouchers) for services and products. Groupon helps facilitate connections between businesses looking for customers and customers looking for deals.

Groupon’s name is the combination of the words “group” and “coupon” and the company was founded in 2008 in Chicago by CEO Andrew Mason who is also the founder of the campaign organization website ThePoint.com, the company which Groupon grew out of. So, the idea of groupon was born from a frustration of the founder when he wanted to cancel his telephone subscription. Groupon’s concept grew into an entirely new venture: a daily deals service that relied on the power of groups and the company remains the market leader in the sector of daily deal industry. The first deal the company offered was for 50% off at a pizza restaurant from the bar motel in Chicago, where it is currently headquartered. The company expanded quickly into Boston, New York, and Washington DC and has shown impressive growth. Groupon is one of the business website that continues to rise day by day and as proof, the company rejected refused $ 6 billion acquisition offer from Google. By 2010, it served approximately more than 150 markets in the north America, 100 markets (in Europe, Asia, and south America), and boasting 35 subscribers worldwide and 1.6 billion dollars of revenue in 2011 (exhibit1, Pg.11-8). Groupon makes money through commissions on the Deals of the day and the explosion of daily deals on Groupon is its key to success. The success allowed the company to become the second fastest website to reach the milestone of $ 1 billion of wealth in short time duration of 16 months,

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: