NETW505 Researchplan cp2
A Study of Groupon’s Utilization of E-commerce in the Current Marketplace
Dylan L. Golden
D40154920
DeVry University
Dylanlg1@gmail.com
Groupon Research Plan
I. Title: A Study of Groupon’s Utilization of E-commerce in the Current Marketplace
II. Hypothesis, Research Questions, or Goals of the Project
The overarching goal of the project is to determine what factors influenced Groupon’s decision to transition into an e-commerce environment. The research questions to be addressed are: 1) what events led to Groupon’s decision to delve into to e-commerce environment? 2) What is the measure of success after Groupons’ decision to immerse itself into an e-commerce environment? 3) What is the customer response to Groupon after e-commerce decisions? 4) Could Groupon’s emergence in the e-commerce environment prompt competitors to adopt a more robust e-commerce strategy?
III. Background and Significance
Groupon is a deal-of-the-day website that features discounted gift certificates usable at local or national companies. Groupon was launched in November 2008, and the first market for Groupon was Chicago, followed soon thereafter by Boston, New York City, and Toronto. By October 2010 Groupon served more than 150 markets in North America and 100 markets in Europe, Asia and South America and had 35 million registered users. The idea for Groupon was created by now-ousted CEO and Pittsburgh native Andrew Mason. The idea subsequently gained the attention of his former employer, Eric Lefkofsky, who provided $1 million in “seed money” to develop the idea. In April 2010, the company was valued at $1.35 billion. According to a December 2010 report conducted by Groupon’s marketing association and reported in Forbes Magazine and the Wall Street Journal, Groupon was “projecting that the company is on pace to make $1 billion in sales faster than any other business, ever” (Groupon Press, 2014).
Since becoming chief executive, Eric Lefkofsky has expressed a
Dylan L. Golden
D40154920
DeVry University
Dylanlg1@gmail.com
Groupon Research Plan
I. Title: A Study of Groupon’s Utilization of E-commerce in the Current Marketplace
II. Hypothesis, Research Questions, or Goals of the Project
The overarching goal of the project is to determine what factors influenced Groupon’s decision to transition into an e-commerce environment. The research questions to be addressed are: 1) what events led to Groupon’s decision to delve into to e-commerce environment? 2) What is the measure of success after Groupons’ decision to immerse itself into an e-commerce environment? 3) What is the customer response to Groupon after e-commerce decisions? 4) Could Groupon’s emergence in the e-commerce environment prompt competitors to adopt a more robust e-commerce strategy?
III. Background and Significance
Groupon is a deal-of-the-day website that features discounted gift certificates usable at local or national companies. Groupon was launched in November 2008, and the first market for Groupon was Chicago, followed soon thereafter by Boston, New York City, and Toronto. By October 2010 Groupon served more than 150 markets in North America and 100 markets in Europe, Asia and South America and had 35 million registered users. The idea for Groupon was created by now-ousted CEO and Pittsburgh native Andrew Mason. The idea subsequently gained the attention of his former employer, Eric Lefkofsky, who provided $1 million in “seed money” to develop the idea. In April 2010, the company was valued at $1.35 billion. According to a December 2010 report conducted by Groupon’s marketing association and reported in Forbes Magazine and the Wall Street Journal, Groupon was “projecting that the company is on pace to make $1 billion in sales faster than any other business, ever” (Groupon Press, 2014).
Since becoming chief executive, Eric Lefkofsky has expressed a