Groupon Case Study

 Case: Groupon: Deals Galore

1. What are the weaknesses of Groupon’s business model described in the videos?

In the video the weaknesses that would be recognized are that the Groupon’s model is not defensible and other Internet firms can actually compete due to Groupon’s unstable high prices, lack of customer loyalty, reported issues and their lack of ability to recover from customers not returning.

2. What features of contemporary e-commerce does Groupon Now! utilize?

Groupon Now! Utilizes technologies that allow for mobility, personalization, social networking and location based services

3. What value does this service provide subscribing merchants? What value does it provide customers?

Groupon introduces new customers to a product/service being sold by a business with hope that they return to the store. Besides that, Groupon’s allow for great discounts to customers via vouchers that can be found in the local area to save money.

4. What kinds of businesses are most likely to benefit from using Groupon?

Groupon would really make a difference in local business markets of leisure, entertainment, food service and retail. Groupon’s benefits those stores with high fixed cost and low variable costs for examples industries such as health clubs, movies and music.

5. . Visit Groupon’s Web site and enter your zip code. What kinds of deals are displayed? Would you use Groupon? Why or why not? What kinds of Groupon deals have you used?

The kind of deals being provided are thos of Spas and restaurants. I would use both these deals because they simple allow me to save money.