Case Analysis Groupon Groupon is an internet website company focused on generating revenue by utilizing relationships with merchants to provide consumers with discounts on select items. The goal of the discounted vouchers is to drive additional consumer store traffic and generate revenue for merchants which are shared with Groupon via a predetermined contractual percentage. Groupon generates visibility and exposure with email and social networking to increase consumer spending at specific merchants
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Groupon Groupon‚ a new internet coupon sensation‚ was formed in Chicago to gain exposure to new businesses through discounted membership deals and has been on the rise ever since. This particular case study attempts to elaborate on the success of Groupon and how it works. The ecoupon was designed to help business owners appeal to new prospective consumers by advertising group discounts on products and services. There are a range of businesses that are advertised on the website. One can find discounts on spa
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Title: Groupon One of the Largest E-commerce Companies and their expansion Strategy. Groupon ranks among the largest social‚ mobile‚ global e-commerce companies and is revolutionizing the way merchants market products and services. Groupon customers find incredible deals at up to 50% savings. What began as a daily deal coupon sent to your email has evolved into a powerful marketing machine. Praised for their cutting edge innovations‚ the company continues to grow with the goal of world e-commerce
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After Groupon created the online platform‚ it allows consumers spread news about interesting items and persuading friends‚ colleagues or families join in. This decrease the time to get the deal. It’s a win-win model for Groupon and customers. Based on Groupon website‚ annual reports‚ and some articles‚ this report aims to find out the value proposition‚ value configuration‚ market seek，and revenue model of Groupon through analysis the operation of Groupon and relationship between Groupon and their
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Accounting Irregularities at Groupon Introduction In September 23 2011‚ Groupon (the Company)‚ a rapidly growing online coupon merchant was forced by the SEC to file a restated S-1 registration statement. The reason for the restatement was that the SEC objected to the accounting methods that Groupon used in the calculation of its revenue‚ causing it to be overstated. According to Villanova University (2012)‚ Groupon’s auditors at Ernst & Young stated that Groupon was not setting aside sufficient
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Groupon Groupon‚ the fastest growing and biggest daily deal social buying site‚ was launched in November 2008 (Hughes and Beukes‚ 2012). It is an internet-based company that sells coupons for events‚ products and services. Competitors have entered the industry‚ essentially created by Groupon‚ which include LivingSocial.com and restaurants.com. Groupon includes customizable deal campaigns‚ credit card payment processing capabilities‚ discounted gift certificates usable at local or national companies
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5) What would you advice Groupon leaders to consider as their next application? Groupon leaders can be commendeded for the work they have done so far. However‚ to drive growth and compete favorably‚ I would suggest that they take advantage of the social networking phenomenon to drive more customers to the site and encourage others in a participatory information sharing that would support their business ideas. They should also create an application that would limit the number of coupons based on
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To: Board of Directors From: Corporate Investments Date: 08/12/11 Re: Groupon investment Groupon’s business model is based around offering mass discounts on certain products and services to subscribed customers from merchants that have signed up with them. The strategy used combines economies of networking and economies of scale. (Mordoekataus‚ 2011) Groupon has demonstrated vast growth in terms of reporting revenue of $713.4 million in 2010‚ reaching over 83 million subscribers while advertising
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Groupon Case Study 1. Groupon has grow from 400 subscribers to 60 million subscribers world wide within five years‚ it’s fastest growing company in history. Groupon stands for group coupon that requires certain amount of subscribers to sign up for the deal. Moreover‚ there is a daily deal for local or national business‚ people can easy to use and redeem‚ so it raises the possibility for people to sign up. Furthermore‚ the most significant thing that Groupon is running based on the Internet‚ so it’s
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Groupon has overcome much resilience since its inception in 2008. After growing from 400 subscribers to over 200 million (in 2011)‚ Groupon has proved its strategy works. To the consumers‚ Groupon is a simple process in which they pick a deal they are interested in‚ enter their credit card information‚ and then wait to see if the deal tips with other purchasers. This waiting period‚ part of the fourth stage in the purchase decision process‚ is one of the most important parts for Groupon’s company
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