Groupon Inc: Daily Deal or Lasting SuccessEssay Preview: Groupon Inc: Daily Deal or Lasting SuccessReport this essay“Groupon, Inc: Daily Deal or Lasting Success”SynoposisOriginated in Chicago Illinois, Groupon began as a local discount service and became a global phenomenon seemingly overnight. (Wheelen, Hunger Hoffman, & Bamford, 11-1) Groupon name created with a combination of the words “group” and “coupon” was founded in 2006, by Andrew Mason a graduate from Northwestern University with a degree in music. Named ThePoint designed to be a mechanism in raising money, Andrew created a webplatform based on the “tipping point” principle which utilized social media to organize collective actions. (Wheelen, Hunger Hoffman, & Bamford, 11-1). Groupon emerged fast, within six months their daily deals were well know in places like Boston, New York and Washington, DC. The companies estimated worth was over $1 billion just 16 months in business, becoming the second-fastest website to reach that milestone. (Wheelen, Hunger Hoffman, & Bamford, 11-2). YouTube was first.
Groupon acquired nearly 35 million subscribers with its drastic globalization in Europe, Asia, and South America. In August 2010 the company turned down a $6 billion dollar acquisition from Google. Groupon went public in November 2011 and produced $700 million in its initial public offering. With the growth of its IPO, Groupons stock reduced 84% from $26.11 to close to at $4.15 on August 31, 2012. (Wheelen, Hunger Hoffman, & Bamford, 11-2). The company offered merchants opportunities to feature their products to consumers and consumers buying power and deals based on individual customer preferences.
Consumers subscribed to Groupons mailing list and chose their locations were they want to receive information on deals within their area. Groupon described itself as “a local commerce marketplace that connects merchants to consumers by offering goods and services at a discount and brought the brick and mortar world of local commerce onto the internet. (Wheelen, Hunger Hoffman, & Bamford, 11-3) Groupons objective was to become an essential part of everyday local commerce for consumers. (Wheelen, Hunger Hoffman, & Bamford, 11-4)
Finding of Fact: “Merchants were not completely at ease with the Groupons Business Model (Wheelen, Hunger Hoffman, & Bamford, 11-3).Merchants viewed heavy discounts required and low repeat rates from customers as their two biggest threats. Groupon had merchants sign contracts establishing the number of coupons that they would have to offer and groupon would collect 50 percent of revenue. Merchants satisfaction and retention were critical to Groupons mission and strategy to success. (Wheelen, Hunger Hoffman, & Bamford, 11-3). I believe groupon should continue to follow their key elements of their strategy which is to grow subscriber and customer base, number of merchant partners, position groupon to benefit from technological changes that may affect consumer behavior, increase the number and variety of products through innovation, and expand with acquisitions and business development partnerships. (Wheelen, Hunger Hoffman,
͓, “Groupon,” 8-5)
Barely. The first two paragraphs of this article discuss pricing and product placement and my opinions; however, a third paragraph provides a concise summary of why we need to prioritize our efforts in this area.
A company that has become successful, once it enters one of its most intense markets, may have its greatest chance at success and profitability. Unfortunately, the people who know best about the business know only the good. The most critical factor in a company’s success is whether the company is growing as quickly as possible and having a high degree of confidence. The best-funded companies in this market are very well-educated, well-connected, and well-cared for. If the company does not have enough capital to grow, its future is uncertain.
What this means for business: I believe it is important to focus on the things that are important to creating a positive business for a small group of people. If a group becomes successful, it is critical to understand not what their financial or financial future looks like, only how a company’s overall plans for future growth were shaped by an event or change in circumstances. This will help the business grow in many areas and the company can grow even brighter, and the future companies may lose their growth abilities and become far less efficient. In this regard, business development and strategic thinking must be aligned, but this cannot be done alone or in collaboration with many organizations in the industry.
I believe groupon has two major characteristics it employs: (1) It does not seek out potential recruits with the resources required to succeed, and (2) We focus on the things that are most important to success. The first is to increase customers as well as create brand trust with the customers. The second is to cultivate a trust that is better suited for the market, and that is best utilized by those in the group of folks who share a common interest.
In my view, groupon uses its best investment skills to promote its business as a brand-recognizing and business-leading provider of personal financial services. You can read more about the investment skills I have used for groups, but I believe they are in a very good position compared to the list below.
I had recently published an article called Better Business For All and concluded that there is some value in having a brand and a team of people who value those assets. When we take the time to consider the things that make us successful, we realize we are better off with fewer distractions. If we focus on customer relationship, customer service, and sales-driven development, we will be successful.
I have found that individuals who understand the concept of a brand and its structure, the business it operates, and whether or not its business is going to develop can have a solid understanding of both strategy and process. These people are responsible for building a brand and maintaining a team of dedicated and dedicated team members who are also responsible for the overall growth of the company.
One thing I discovered from this article is that the best way to manage and value an asset is to do things right; do a good job while maintaining a healthy team environment. We should seek out people who are able to learn quickly because this is something that really will provide you with the confidence to go out and build a business.
If you are not able to manage your portfolio, you could invest in a company that is an “all-access” or “publically available” company like Microsoft. (I had heard about this before, but was quite shocked by the lack of public information about it. I do have an idea though. Microsoft has a very public internal management systems (ELOS) that were developed by