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What is Groupon

Groupon is the American company that is serving worldwide e-commerce marketplace; there are millions of subscribers of the company. Groupon is providing travel, goods and services to the customers in 28 countries. In March 2015, it was anticipated that company is serving in more than 500 cities worldwide and there are nearly 48.1 million active consumers.

Key Partners

Groupon’s CEO, Andrew Mason has focused on the partnerships, as company is expanding rapidly in the market, organic growth for the company was difficult, so to gain big scale Groupon’s need to  increase the network effects. Key partners include the Chinese mobile operator and the internet giant, who is called Tencent, and these both companies have the joint venture called Gaopeng. Moreover, in China, Groupon is providing the coupons creating GroupNET. Groupon’s can expand the activities in order to get much more benefits for the partners.

Key Activities

Groupon for the key activities is focused on the cost of the key activities. Groupon need to focus on making the core business effective, so that there could be agreements and sell campaigns. Moreover, for proliferation of local newsletters there are the city planners and other qualified professionals, who are managing the company business. Groupon can manage the the inventory of available deal; there is the setting of weekly schedule and content creation for the customers, the company is publishing and email and focusing of on campaign management. Groupon operations also include the Profiling and Business Intelligence, Managing the Merchant Databases, Merge and Acquisition Skills for Maintaining the Rapid Growth.

Value Proposition

For the Value Proposition Groupon has focused on the specific value proposition, as there are deep discounts and effective value proposition for the merchants. Groupon can be innovative in advertising tool for the effective marketing costs, the company is setting very effective profiling and focused on the segmenting the customer. The potential attractiveness of the company has the new revenue stream. Groupon need to value proposition giving effectiveness to the customers and merchants so that payment on credit card systems could be done, there is the effective perform analytics on the payment transactions.

Customer Relationships

Groupon is managing the effective relations with consumers, as there is the focus on the low cost strategies and building the trust, the company is creating the confidence in the customers, Groupon also making the deals that guaranteed the deal transparency so that maximum customers could be attracted. The company responsible for the reimbursement of fraudulent, thus there is the trusted relationship and reliability. Moreover, Groupon has growth and deal quality for the merchant and customers, there is the online enrollment and company is continues monitoring, Groupon’s can do the online self-enrollment for the long-term sustainability. The company recently had created the Groupon travel in order to attract and satisfy customers.

Customer Segments

For the customer segments, Groupon has the two-sided-market, which focuses on an aggregator, which based on the economic platform; there are transactions between two user groups as support is there for B2B market. Groupon also has the local consumers including professional, people who are highly literate and they have internet, there are benefits for the business because local merchants  are there, which includes the restaurants, spas, and the medium or small entrepreneurs, moreover, direct relationships are there with the customers. Groupon is targeting big events example online GrouponLive!.

Groupon’s can expand the customers segments by focusing much on the fulfilling their demands (Groupon, 2017).

Key Resources

Groupon key resources are involving the people, who are engaged in activities example, the people indulge in sales, developers etc. There are the marketing experts providing benefits to the company. Groupon can invest in organic customer acquisition so that there could be the future monetization options, and there are focus on Groupon mailing lists and databases.


Groupon has focused on the channels that are serving the customers online, through email and website. There is the integration with the social networks. The company also takes the benefit of the viral marketing; there are the links on the Twitter and Facebook. Company can serve the customers through mobile channel and the location-based smartphone app so that customer and merchants get effectiveness; there can be the real-time deal-on demands, as online B2B portal is focused through the app GrouponWorks, which contains the information on products etc.

Cost Structure

Groupon cost structure is bearing the costs in many segments, for the efficient development, as the focus is on the web platform and the IT applications or other operations that can be expensive in market; the major cost is spending on the marketing and sales. Thus, the company rising cost of acquisition, there are low entry barriers in the industry, so entrance of new competitors is possible, based on the reason company is ready to afford any cost for operations. Groupon is paying to city planners and the marketing managers; there is the focus on the B2B sale force, which enhancing the sales & marketing costs (Ibcomtransmedia2012, 2012).

Revenue Streams

Groupon is focused on the business model and the revenue generation so that there could be advantages in the market, Groupon is cash flow generator for the revenue there are growing needs for marketing. Groupon is managing well the customer base, so that there could be merchant expansion and efficient transaction fees. Groupon for the diversify revenue sources can extending or expand the product portfolio so that there could be maximum advantages, the company currently focuses of the Groupon Now, Groupon Live for growth, as there are Groupon Rewards and customer  loyalty  in the specific physical stores (Research Investment, 2017).

Also Study:

Challenges in E-commerce Industry

  • Groupon. (2017). Retrieved March 30, 2017, from https://www.groupon.com/
  • Ibcomtransmedia2012. (2012). Groupon – Business Model. Retrieved March 30, 2017, from https://ibcomtransmedia2012.wordpress.com/2012/10/19/groupon-business-model/
  • Research Investment. (2017, March 15). Groupon Inc (GRPN): Room To Grow? Retrieved March 30, 2017, from https://simplywall.st/news/2017/03/15/groupon-inc-grpn-room-to-grow/

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