Groupon Video Case

In: Computers and Technology

Submitted By gcfung
Words 977
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Management Information Systems 13e
KENNETH C. LAUDON AND JANE P. LAUDON

CHAPTER 10

E-COMMERCE: DIGITAL MARKETS, DIGITAL GOODS

Groupon: Deals Galore

CASE 1

(a) The Real Deal With Groupon
VIDEO
CASE

Systems

URL http://www.youtube.com/watch?v=tgeh607ZXA0; L=12:42

(b) Introducing Groupon Now!
VIDEO
CASE

URL http://www.youtube.com/watch?v=Vgk1YfInZoM; L=1:55

continued

Chapter 10, Case 1 Groupon: Deals Galore 2

SUMMARY: Groupon is the leading daily-deals site on the Internet, with nearly 50 million subscribers.
In 2011 it was the fastest growing company in the history of the Internet, but in 2012 it imploded to be one of the fastest falling stocks on Wall Street. Groupon Now! is a
Groupon location-based service that finds local deals you can buy and use immediately using your mobile phone. It is one of several new initiatives from Groupon as it seeks to expand beyond the vulnerable daily-deals marketspace.

CASE Groupon’s business model is based on the theory that everyone loves a great deal. Groupon is a popular “deal of the day” Web site offering discounted gift certificates usable at local or national companies. Each day Groupon e-mails its subscribers discounted offers for goods and services that are targeted by location and personal preferences. Consumers can also access its deals directly through its Web sites and mobile applications.
Customers purchase Groupons from the company and redeem them with affiliated merchants. The discounts are huge—usually 50 to 90 percent off. But there’s a catch: A deal becomes available only if a certain number of people sign up for a specific daily Groupon offer. If the predetermined minimum is not met, no one gets the deal that day. This reduces risk for retailers, who can treat the coupons as quantity discounts as well as sales promotion…...

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