Reflection Case
Groupon, one of the fastest growing companies in todays’ interconnected world of web, is a company with simple idea of selling coupons that has been around for decades but has that appeal of market maker in the context of ever changing doing and dealing in business. The business model of giving greater than 50% discounts in daily deals for consumers by paying in advance for those vouchers and redeeming it at a convenient time later on is a simple in idea and revenue generating model. With a minimal startup cost and localized services offering marketing services to both consumers and merchants, it acted as a platform and medium to bring in both worlds with their share of buying and selling products and services. The fact that within three years of its inception, it has grown from 120 employee in 2009 to more than 11,000 employees in 2011; 6 billion worth of market cap and .37 million active customers in 2009 to 33.7 in 2011attest to its success with growing brand awareness and large clientele to its name.
In its small time in the market, it grew from one city to thirty cities in U.S. and Canada and operating in 48 countries all over the world. Groupon’s customers are its merchants who sell their products and services and individual customers who buy from the merchants with deep discount coupons. Both the parties are happy with their share, for merchants it’s no to low cost for their marketing gain while individual customers are happy to get these products and services which were once not affordable or seemed unnecessary or trying out new place which they did not notice in their vicinity.
The age old business idea has been transformed by the social media and digital technology that Groupon has been widely successful for age group 18 -34 who know their lifestyle lives around these technologies.
The parameters of success within the online services market may not be ever-lasting as constant competitors like Living Social arise at every corner