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