How To Enter Groupon

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

Founded by Andrew Mason, Groupon stemmed from ‘The Point’, mason’s first website that had been launched in 2007 (Sennett, 2012). The Point was mainly based on social action; that if sufficient people believed that there was an issue that needed solving, they would take responsibility and solve it. Although The Point had failed to reap the expected revenue, it played a significant role in enlightening Mason and other stakeholders on the importance of group action. In that case, in November 2008, Groupon was launched with the aim of achieving a buying power that was collective (Sennett, 2012). On its inception as a website from The Point, Groupon, deploying the group persuasion concept, offered massive discounts via mass purchase. At first, the

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

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

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 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.

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

Groupon’s vision is that they are an online website where any costumer, seemingly anywhere around the world, can purchase coupons at highly discounted rates, for items or services that they would originally pay full price for. Its mission is mainly based off of two things; its values and their promise (to the costumer). When it comes to their values, it all starts with the customer. Groupon is always striving to the best they can be, “Always imagining new ways to exceed the expectations of all our customers—both consumers looking for great experiences at a great value and merchants seeking solutions to attract more customers and run their businesses ' better.” (Groupon) Groupon also believes that great people make great companies. They believe that they’re “A home for creative, problem-solvers, and innovators alike—those with the passion and know-how to transform

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.

“Groupon! Get your Groupon! Hot off the presses!” It wasn’t too long ago Groupon Inc. was the darling of Wall Street. Institutional and individual investors alike were anxiously anticipating an opportunity to buy shares of the company dubbed by Fast Company as “the most exciting thing to happen to retail since eBay.” That excitement was mirrored on November 4, 2011, Groupon’s first day of trading on the New York Stock Exchange, as the price sky-rocketed to a high of $31.14 compared to its initial $20.00 IPO valuation. However, that unbridled enthusiasm has dwindled since as the stock has plummeted to an all-time low of $3.83 as of Friday November 2, 2012 (Yahoo! Finance 2012). Let’s take a

2. Local merchants have a mixed reaction about Groupon. What is your opinion- is it good for merchants or not?

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:

Crap offers to lure the customers: Sometimes savvy businesses may try to use Groupon as a means to get clients in the door by offering worthless items at a discount.

He plans for Groupon to not only be a source for discounted products or services such as pizza or manicures, but also to become a place where people can purchase vacations (Groupon Getaways), curated products (Groupon Goods), and high-end specials (Groupon Reserve). Lefkofsky transformed the company from a push model (shoving deals through

Groupon has been the primary source of bargaining leading individuals to try promotional offers at restaurants, stores, and more. Their model works because shoppers are always looking for the best deals to gain more value than they are willing or able to pay, enabling them to become a trusted guide to local businesses. Their success now drives from the shift from searching and cutting for coupons to the digital collection of coupons with a wide array of categories and search capabilities to narrow your options that will best fit your preference. Other ventures such as LivingSocial, Amazon Local, Sweetjack, DealChicken, Half Off Depot, Plum District, and TravelZoo have practiced the same concept as Groupon but have not successfully executed or met the high levels of activity as Groupon. Groupon has been triumphant in their practice as opposed to other similar ventures by offering more deals with better discounts within the user’s area than the other social media marketing sites and the offers continue to expand worldwide. Groupon covers 185 cities while Living Social only acquires 140. According to DigitalBuzz 2011, the Inforgraphics portray Groupon to having 5 million subscribers, 18 million Groupons sold in North America, $700 million saved in North America, a $30 average coupon price, with a 57% average Groupon discount. Joe Pulizzi claims an increase of subscribers to 70 million. Similarly to online shopping, Groupon permits users to store deals in their shopping carts,