A Report On Groupon 's Estimated Worth On An Idea Popularized By Malcolm Gladwell
1428 Words Oct 3rd, 2016 6 Pages
Andrew Mason founded Groupon in 2006. Based on an idea popularized by Malcolm Gladwell, Mason thought that if consumers could come together as a group they would have more purchasing power to get better deals... Originally named ThePoint, Mason tried to get users to raise money for various causes. The Point could be used for anything “from boycotting a multinational company to getting 20% off a subscription to The Economist”(11-2). To reach its full potential ThePoint would need to be more focused. Mason found that ThePoint was at its best when customers were coming together around particular deals, so he started recruiting merchants to offer tipping point deals. In these deals the coupon only became valid if enough customers bought the coupon, but when this happened “consumers saved money and merchants benefitted from both large-scale sales and market exposure”(11-2).
After being one of the fastest growing companies ever, Groupon has not been able to sustain that trajectory. “Groupon’s estimated worth was over US$1 billion after just 16 months in business, becoming the second fastest website to reach that milestone”(11-2). In 2010 “Groupon rejected a US$6 billion acquisition offer” (11-2) from Google, and in November 2011, “the company raised US$700 million in its initial public offering”(11-2), but “in the 10 subsequent months, Groupon’s stock fell 84% from US$26.11 to close at US$4.15 on August 31, 2012”(11-2).
• 35 million registered…