Scouting Report: Groupon Company

Scouting report: Groupon Company

Corporate Strategy

Group 6

Orange Hsu, Mimi Hsu, To Leung, Jack Li

Yanjing Li, Kelly Tsai, Timer Yan

• Introduction

• Profile

• Its name blends “group” and “coupon”.
• Groupon is a global e-commerce marketplace connecting millions of subscribers with local merchants by offering activities, travel, goods and services in more than 45 countries.
• provided consumers about the discount tickets for eat, drink, play, music etc

• History

• 2008-Groupon's first deal was a half-price offer for pizzas for the restaurant on the first floor of its building in Chicago.
• 2010-MyCityDeal(European)+ClanDescuento(South American)+service Qpod.jp (Japanese)+Darberry.ru(Russianboth)+Beeconomic.com (Singaporean)=>Groupon

Groupon served more than 150 markets in North America and 100 markets in Europe, Asia, and South America

• 2011-expand its business in Malaysia
• 2014- Groupon's shares rose by 1.4%=>Peak
• 2015- ceasing operations in international markets such as Morocco, Panama, Philippines, Puerto Rico, Taiwan, Thailand and Uruguay.

• Values

• Start with the Customer

Seeking the balance between consumers and merchants. Which means, both consumers looking for great experiences at a great value and merchants seeking solutions to attract more customers and run their businesses better.

• Intolerant of Mediocrity

Pursuing the excellent by ongoing testing and improvements to their site design, mobile app, inventory, and shopping experience. In order to satisfy the customers.

• Build for the Long Term

Investing the merchants. They provide the chance for merchants to show their products with low price which customers are willing to give it a try.

• Making Life Less Boring

Providing an escape from the everyday grind. They provide many new and unpredictable options about restaurants, spa, traveling and so on for customers. In this way, customers can do something different from the daily life.

• Analysis

• STP

• Segmentation-3 categories

1. one time purchasers
2. occasional user
3. frequent user

• Targeting- variety of offers, business builder
• Positioning- internet, smartphones

• 4P

• Product- Groupon sells discount coupons on the internet
• Promotion

1. easy to use interface
2. word of mouth

• Pricing

1. revenue sharing agreements
2. selling at a loss

• Placement

1. service available through the internet
2. biggest market is the US but major expansion is underway in Europe

• SWOT

• Industry structure

• Industrial position

        Groupon is a group-based social e-commerce buying service since 2008 and has boosted the number of markets where it operates to 500 and has 70 million subscribers. Groupon was one of the first pioneers embraced the new concept in e-commerce retail marketing. Its products are not only targeted what people want but also what they need. The major customers are young generations who want to try something new but also affordable. Groupon offered daily deals start from 50 percent off to 90 percent cheaper than the normal price because its hope is that the customers will spend money on other items as well and become regular customers. Although its manifestations is buy, the revenue model is to rely on commission and other charges; thus, Groupon's future with great uncertainty. In 2011 Groupon launched two functions: