What is Groupon and how does it work - 2246 Words

TMA 1 Question 1 What is Groupon and how does it work? What is Groupon’s market? What does this company do and how does it make money? Groupon is a web-based platform for organizing collective buying. It is a market in which inspiring customers to buy from local business with deep discount and Groupon share revenue with the businesses. The subscribers of the Groupon.com may buy specific goods from local companies with 50 to 90% less. The typical Groupon subscriber are young (mostly are 18-34), single, well-educated (mostly are degree holder), urban women, employed and with significant earning power. A flood of business came from this sector of the people with long working hours. Those people almost are the e-mail users.†¦show more content†¦Please support your argument. The Industry life cycle helps us to analyze the effects of industry evolution on competitive forces. And there are five sequential stages, they are 1) embryonic, 2) growth, 3) shakeout, 4) mature and 5) decline. In the stage of mature, demand growth is low or zero while in the stage of mature, keen competition for market share and price-cutting and firms turn to cost-cutting and brand loyalty building. The collective buying industry is at the early stage of mature of the industry life cycle. Earnings and sales grow slower in mature industries than in growth and embryonic industries. A mature industry may be at its peak or just past it. The collective buying market s growth has been massive over the past few years, is starting to mature, with merchants and group buying sites understanding that they need to be more selective in the types of deals offered. And creating longer term relationships with successful merchants. And, competition is keen and narrowed the market share of the collective buying. The business model is simple, easy to copy and the collective buying become very popular that for it is an easy to entry business. The are many competitors, like DealOn, HomeRun, KGB deals, Tipper, Twangoo, BuyWithMe, Google Offers, and even the top five players in the market – Groupon, Scoopon, LivingSocial, Cudo, and OurDeal – generate over 80 per cent of the market revenue. It is being expected this trend to continue in 2013 with theShow MoreRelatedGroupon Essay990 Words   |  4 Pagesï » ¿GROUPON Introduction Groupon is a ‘Deal-of-the-day’ website that features discounted gift certificates usable at local or national companies that was launched in November 2008. 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 over 35 million registered users. A sum of $1 million was invested to develop theRead MoreGroupon, Inc. ( Groupon965 Words   |  4 PagesGroupon, Inc. (â€Å"Groupon†) is a company that specializes in local commerce. It has relationships with companies on a global scale and alerts consumers on the hottest deals with respect to shopping for various products, travel destinations, and popular spots, goods and services that a city has to offer. The stock ticker for the company on the NASDAQ exchange is â€Å"GRPN.† The company is listed under the sector ‘Technology’ and industry ‘Internet Information Providers.’ It started off as ‘ThePoint.comRead MoreAnalysis Of Toyota s Cleaner And Greener Initiative1458 Words   |  6 PagesParks is one way to promote and create awareness. Collaborations with conservation organization to promote less pollutions with their hybrid models along with their efforts on energy sustainability Has Toyota’s National Park project been a success? What indicators suggest that the project has had an impact. The National Park Project was created to bring awareness to creating and restoring a cleaner environment. 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We would also hold off on major newspaper and TV news channels until everything is ready. We would continue with the smaller, more controllable variables of branding until all is ready and proven worthy. This includes billboards, Groupon promotions, industry shops, and specialized individual events that each would have its own sales goals, marketing plan and budget and be totally traceable as to its success i.e. music events, archery events, specialized winter ski events, crashedRead MoreAccounting Irregularities at Groupon1017 Words   |  5 PagesAccounting 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 sufficientRead MoreMarketing Options For Restaurants And Luxury Retailers For The Shopping Field Of Coupon Selling Companies1325 Words   |  6 Pagestheir brands by offering too many incentives and running coupons that reduce regular prices, except for BOGO offers. A recent report by the University of Maryland s Business School confirmed the Groupon effect that devalues restaurants that offer big discounts. Clinical studies and analyses proved that Groupon-style offers can damage restaurant reputations, especially eateries that offer lower priced meals.[1] However, the study found that upscale restaurants tended to be immune from this risk, possiblyRead MoreGroupon Marketing Essay3349 Words   |  14 PagesGroupon Groupon Marketing Plan Groupon Swipe Card Table Of Contents 1.0 Executive Summary 2.0 Situational Analysis a. Politics b. Laws and Regulations c. Media Environment d. Social and Cultural Forces 2.1 Market summary 2.2 SWOT Analysis 2.3 Competition 2.4 Product Offering 2.5 Keys to Success 2.6 Critical Issues 3.0 Market Strategy 3.1 Mission 3.2 Marketing Objectives 3.3 Financial Objectives 3.4 Target Markets 3.5 Positioning 3.6 Strategies