I.

Review Case Study 6

 II. Introduction of Groupon

Groupon is an American worldwide e-commerce marketplace connecting millions of

subscribers with local merchants by offering activities, travel, goods and services in more
than 28 countries. Based in Chicago, Groupon was launched in November 2008, and the
first market for Groupon was Chicago, followed soon thereafter by Boston, New York City
and Toronto. By October 2010 Groupon was available in 150 cities in North America and
100 cities in Europe, Asia and South America, and had 35 million registered users.

The idea for Groupon was created by now-ousted CEO and Pittsburgh native Andrew
Mason. The idea subsequently gained the attention of his former employer, Eric Lefkofsky,
who provided $1 million in "seed money" to develop the idea. In April 2010, the company
was valued at $1.35 billion. According to a December 2010 report conducted by Groupon's
marketing association and reported in Forbes magazine and the Wall Street Journal,
Groupon was "projecting that the company is on pace to make $1 billion in sales faster than
any other business, ever."

Groupon have strategic vision, that is becoming a global leader in local commerce.
 II. Introduction of Groupon

Benefit as Groupon’s User (Both Merchant and Customer) :

1. Groupon offer Discount Coupon that interest for deal-seekers and bargain shoppers.
2. Customer have benefit from discount offer.
3. Merchant have benefit from Groupon’s promotion that make their product can be
known to new customer and new market.
II. Introduction of Groupon
II. Introduction of Groupon
 III. Description of The Problem

A. Questions :
1. How might Groupon reinvest or upgrade its technology and sales skills so it
builds a global customer base?
2. For example, are there new products or service that would meet the needs
of global clients in each of the local markets where the client does
business?
3. Brainstorming ways that Groupon might add value for its customers. How
might Groupon build relationship with clients that are more socially
complex, making Groupon’s competencies more difficult to imitate?
 III. Description of The Problem

B. Problem of Groupon’s Advance :

1. Groupon have many Clones that imitate Groupon’s market system, their often able
to better serve and suite what consumer needs. So, it’s make Groupon’s advance
worse.
2. Technology Advance and many kind of different group population’s need make
Groupon must creating a segmentation for each local market as geographic,
gender, and population.
 IV. Problem Solving

Source : Book “Internal Analysis Resources, Capabilities and Core Competencies - Rothaermel
 IV. Problem Solving

How to making Groupon’s competencies more difficult to imitate :

1. It’s not about how high technology that used, but it’s about how might Groupon can serve
the needs of local markets and specified population groups. Because quality of goods or
service cannot be judge unless they are consumed.
2. Need more creation and creating essence of experience goods or service with specified
segmentation as geographic condition, because that their consumption happens in the
same geographic space.
On this step, can creating deeper relationships and expertise with all Groupon’s users (Both
merchant / Businessman or Consumer)
3. Upgrade Technology it’s so important, regularly and properly suitable with technology
advances.