Groupon: a Comprehensive Study
Groupon: A comprehensive Strategy
TM583 – Course Project
By Jesse Marcano
Cory Shenault
Clifton Leonard
Table of Contents
Introduction 2 Section 1 - Strategy 3 Section 2 – Core Competencies 6 Section 3 – Industry Dynamics 10 Section 4 – Technology Sourcing and Internal Innovation 13 Section 5 – Product Development Strategy 16 Section 6 – Strategy to Protect Innovations 17 Conclusion 20 Bibliography 20
Introduction
Groupon did not invent the daily deal website; however, they introduced the concept of using the group buying power of online shoppers to receive substantial discounts from local merchants. Their model has been easy to replicate, which has lead to many clones operating in the same market as Groupon. As one of the first entrants into this market, they have gained the name recognition to allow them to partner with a plethora of local businesses. Additionally, their massive data warehouses contain extensive data on customer buying habits and which deals have been most successful. The use of advanced analytics to segment this data lets them target customers with the most relevant deals. These advantages have allowed them to grow more quickly than any business in history. With continued innovation, they should be able to sustain this tremendous growth and help maintain their top spot in the market.
Section 1 - Strategy
Hyper Local Marketing, E-commerce, and social networking are the core competencies of Groupon which is a group-based social e-commerce service that launched in November of 1998. It was initially part of The Point platform which is a collective platform for activists and philanthropists. The Point is where like-minded people meet in order to further the progress of their business endeavors. The Point was used by people to organize group purchases (such as magazines subscriptions) by people. “It was this site that inspired Andrew Mason to create Groupon and begin using group buying power to create a
TM583 – Course Project
By Jesse Marcano
Cory Shenault
Clifton Leonard
Table of Contents
Introduction 2 Section 1 - Strategy 3 Section 2 – Core Competencies 6 Section 3 – Industry Dynamics 10 Section 4 – Technology Sourcing and Internal Innovation 13 Section 5 – Product Development Strategy 16 Section 6 – Strategy to Protect Innovations 17 Conclusion 20 Bibliography 20
Introduction
Groupon did not invent the daily deal website; however, they introduced the concept of using the group buying power of online shoppers to receive substantial discounts from local merchants. Their model has been easy to replicate, which has lead to many clones operating in the same market as Groupon. As one of the first entrants into this market, they have gained the name recognition to allow them to partner with a plethora of local businesses. Additionally, their massive data warehouses contain extensive data on customer buying habits and which deals have been most successful. The use of advanced analytics to segment this data lets them target customers with the most relevant deals. These advantages have allowed them to grow more quickly than any business in history. With continued innovation, they should be able to sustain this tremendous growth and help maintain their top spot in the market.
Section 1 - Strategy
Hyper Local Marketing, E-commerce, and social networking are the core competencies of Groupon which is a group-based social e-commerce service that launched in November of 1998. It was initially part of The Point platform which is a collective platform for activists and philanthropists. The Point is where like-minded people meet in order to further the progress of their business endeavors. The Point was used by people to organize group purchases (such as magazines subscriptions) by people. “It was this site that inspired Andrew Mason to create Groupon and begin using group buying power to create a
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