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Groupon
By: John Gallagher, Kyle Grant and Forrester Pierce
History of Groupon•Founder Andrew Mason•ThePoint.com (November 2007)•Tipping Point Strategy•Utilize Social Media for organization
Groupon’s Emergence•Started November 2008•Overwhelming amount of cool choices•Collective Buying Power
▫Tipping Point Strategy▫No Inventory▫Deal of the Day
Immediate Growth
•Estimated over $1 Billion after 16 months•Gained 350 employees within 1.5 years•Has over 50 million registers users now•Now has 500 markets within 44 different
countries
Expansion
•Now serves 500 markets in 44 countries•Re-branded acquisitions
▫MyCityDeal (Europe, 2010)▫ClanDescuento (South America, 2010)▫Beeconomic.com (Singapore) ▫Qpod.jp (Japan, 2010)▫SoSasta.com (India, 2011)
Controversy•http://www.youtube.com/watch?v=vVkFT2
yjk0A
Business Model• http://www.youtube.com/watch?v=_xgPtqT0X
BY• No upfront cost for customers• Create profile where Groupon can collect info• Companies contact Groupon• One “Groupon” per day to customers through
email• Half of deal revenue goes to the company,
other half to Groupon• Potential Problems• Fun Facts
Competition• Virtually no barriers to
entry in deal-of-the-day market▫ Over 500 sites worldwide
• Top Companies1. Groupon – 11 million
viewers/month2. Living Social – 7.2 million
viewers/month3. Gilt Group – 800,000
viewers/month
Living Social
•Launched in 2007•December, 2010 partnered with Amazon
- Have invested $208 million in Living Social
•Net loss of $558 million loss last year- Blamed on rapid expansion
Google Offers
•Launched June, 2011- After failed attempt to buy Groupon
•Differentiated from Groupon because limitless purchases
•Integrated Google Checkout and Google Wallet
Groupon Now!
•http://www.youtube.com/watch?v=Vgk1YfInZoM
•Mobile App•Real-time coupons for retailers in area•Example of buying pizza
Problems with Groupon Now!
•Push vs. Pull Notifications
•Similar to an app that Living Social tried to implement
Groupon: Good or Bad for Business?
Problems with Groupon
•Retailers unable to retain customers•Fear that people buying Groupon are
already customers of retailer•Not enough marketers using Groupon•Overcrowding at the time of coupon
Groupon on the Decline?•Fear that it will collapse as quickly as it
succeeded•Already showing signs of decline with
stock price
Questions
1) What type of services do you think have the most success with Groupon?
2) Do you think there is enough demand for Groupon to venture into smaller towns and not only operate in large cities?
3) What do you think the future of Groupon and other daily deal websites will be?
Works Cited• http://www.forbes.com/sites/mashable/2011/01/07/the-history-of-g
roupon/• http://www.thepoint.com/doc/learn_more• http://en.wikipedia.org/wiki/Groupon• http://articles.businessinsider.com/2012-02-01/tech/31011853_1_li
vingsocial-groupon-amazon• http://www.itworld.com/software/246803/groupon-shares-benefit-li
vingsocials-losses• http://en.wikipedia.org/wiki/Google_Offers• http://en.wikipedia.org/wiki/LivingSocial• http://blogs.forrester.com/sucharita_mulpuru/11-11-07-for_groupo
n_the_really_hard_work_starts_now• http://en.wikipedia.org/wiki/Groupon#Business_model• http://news.cnet.com/8301-1023_3-20067799-93.html• http://seekingalpha.com/article/507591-is-groupon-at-the-end-of-it
s-descent• http://www.sandiegopchelp.com/future-of-groupon-and-daily-deals/• http://finance.yahoo.com/blogs/daily-ticker/bad-news-groupon-pro
duct-were-betting-future-doesn-130945102.html• http://www.youtube.com/watch?v=26W7-O22I7Y
http://money.cnn.com/2011/05/09/technology/groupon_now/index.htm