The Groupon business model: Groupon’s business model is scalable due to which they were able to expand into so many countries in such a short period of time. However, it is fairly simple, easily replicable.
• Groupon is more or less an aggregator platform for a two sided market and it cannot sustain unless both of the parties are benefited.
• In the long run the fact that even after high discounts, half of a merchant’s profit and non-returning customers, decline in quality of services might hamper its growth as merchants might get reluctant to partner up with them in long run.
• This, may destabilize the 2 sided market and may lead to a collapse. However, their new efforts like Groupon now & Groupon Rewards aim at improving this and might help the current situation.
Groupon’s Growth & Consumers: Groupon was using a very simple and universal business model which …show more content…
• Some major technological companies were also trying to get in the market like Facebook & Google.
• Traditional coupon magazines were also coming into competition such as Double Take deals were also coming into to the market with some deal aggregators like Newegg (niche), Slickdeals (gen).
Groupon seems to have is an early mover’s advantage and quirky marketing techniques which has established them in the market and provided them better market recognition than others.
Groupon 2.0: Groupon 2.0 is Groupon’s effort to update their services and keep on innovating to maintain relevancy in a highly competitive marketplace. Following are major Pros of this effort.
• Groupon Now the “hyper-Local” effort is aimed to make more customizable and short term deals, giving more power to merchants through yield management.
• Efforts to lock in customers using reward
• Groupon is more or less an aggregator platform for a two sided market and it cannot sustain unless both of the parties are benefited.
• In the long run the fact that even after high discounts, half of a merchant’s profit and non-returning customers, decline in quality of services might hamper its growth as merchants might get reluctant to partner up with them in long run.
• This, may destabilize the 2 sided market and may lead to a collapse. However, their new efforts like Groupon now & Groupon Rewards aim at improving this and might help the current situation.
Groupon’s Growth & Consumers: Groupon was using a very simple and universal business model which …show more content…
• Some major technological companies were also trying to get in the market like Facebook & Google.
• Traditional coupon magazines were also coming into competition such as Double Take deals were also coming into to the market with some deal aggregators like Newegg (niche), Slickdeals (gen).
Groupon seems to have is an early mover’s advantage and quirky marketing techniques which has established them in the market and provided them better market recognition than others.
Groupon 2.0: Groupon 2.0 is Groupon’s effort to update their services and keep on innovating to maintain relevancy in a highly competitive marketplace. Following are major Pros of this effort.
• Groupon Now the “hyper-Local” effort is aimed to make more customizable and short term deals, giving more power to merchants through yield management.
• Efforts to lock in customers using reward