The Internet Based Business Of Groupon

1646 Words7 Pages
The chosen industry of this research is focused on the internet based business of Groupon. This company is a deal-of-the-day website that is able to offer its members discounted gift certificates and services that are able to be used at local and national companies that are affiliated with Groupon. They made their debut in November 2008. Their first market was only in Chicago then closely followed by Boston, New York and later Toronto. By the end of 2010 Groupon was able to serve around 150 markets in North America and another 100 markets in Europe. At that time there were about 35 million registered members or users. Andrew Mason is the mastermind of this uniquely formed business (Groupon, 2015). His business idea has lead him into…show more content…
Once they have the route in which they will take they will need to further define if they will be performing their activities and processes differently or perform different activities from their competitors. With making this distinction they will be able to hopefully out perform their challenger, this is an important part of the business-level strategy. It will help define them as a company. They will want to be able to create exceptional value for the customers and vendors alike. This strategy will help them stand out among the others. Firms have five different levels of strategies that they can establish to protect themselves from their competition. The five levels include: cost leadership, differentiation, focused cost leadership, focused differentiation, and integrated cost leadership/differentiation (Hitt, M. A., Ireland, R. D., & Hoskisson, R. E., Page 108 (2013). Each one of these levels has their own characteristics. Looking at how Groupon has been the first major daily deal provider, which in itself has had a huge advantage over the competitors. They have been able to leverage its first-mover advantage with using the cost leadership strategy. Groupon is able to use the cost advantage in the market to act as a voice for the everyday people, helping them find bargains using the local markets that would otherwise not attract the average person. Furthermore, Groupon is
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