...GROUPON VIDEO CASE 1. What features of contemporary e-commerce does Groupon Now! utilize? * Ubiquity: Groupon now offers local deals at any moment of the day. * Global Reach: Groupon features a daily deal on the best stuff to do, see, eat, and buy in 48 countries, and soon beyond (read: Space). We have about 10,000 employees working across our Chicago headquarters, a growing office in Palo Alto, CA, local markets throughout North America and regional offices in Europe, Latin America, Asia and around the world. * Interactivity: Since the payment information is saved with the Groupon account you can just tap on a deal to purchase it. The app will give you a scannable barcode that the shop offering the deal can read using the Groupon NOW app. * Personalization and customization: Groupon personalizes “deals” for users who supply some information about themselves, such as their zip code, gender and age, and it will make sure you see the deals most relevant to you. * Information density: Groupon now share with the user many promotions according to the place, so the user can compare options and select the one he likes more. * Richness: If the user finds a deal he or she likes, that person “buys” the deal online via Groupon. The user can print the voucher or bring it up to display on a mobile device. 2. What value does this service provide subscribing merchants? What value does it provide customers? SUBSCRIBING MERCHANTS * A deal in Groupon...
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...TRAVER video case chapter 5 case 1 watch the video at E-commerce Business Strategies Deals Galore at Groupon https://www.youtube.com/watch?v=iHWEXs6fOrw summary Groupon is a location-based service that helps consumers find great local deals and assists merchants in attracting and managing customers. L= 3:40. 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. Customers purchase Groupons through Groupon’s Web site or mobile apps and redeem them with affiliated merchants. The discounts are huge—usually 50 to 90 percent off. Groupon makes money by keeping approximately half the money the customer pays for the coupon. Most deals are only valid for several days and have a limited quantity. Groupon started as a group coupon-broker of services, and initially deals were only met if a certain number of people purchased them. However, enough deals are purchased that Groupon has been able to discard that tipping point for enabling deals. The company has grown rapidly (today it is in over 1000 cities in 48 countries) to become more of a marketplace and has expanded its offerings. Groupon Goods is an online deal-of-the-day department-style store; Groupon Live offers...
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...Groupon Case 25 points This case is to be completed individually by each student in the class. No collaboration or discussion of the case with any other student in the class is permitted. The due date for the case is at the beginning of class on Monday, April 29, 2013 (the last day of class). Only hard copies of the case should be turned in. If you will be absent for class on that day, have somebody else in class turn it in or put it in the professor’s mailbox on the 5th floor of the RCB building. No email submissions of the case will be accepted. The two accounting standards pertaining to the case, SAB 101(SEC) and EITF 99-19 (FASB) have been posted on Desire2Learn in the same folder as the case. Students will receive an extra credit of 5 points for filling out a questionnaire about the case at the end of the semester. The Case of Groupon’s Revenue Recognition: The Bottom Line on Top Line Revenues Groupon is the extraordinary company that has revolutionized the world of coupon marketing. In November 2008, at the age of 27, Andrew Mason, a music major from Northwestern University, launched Groupon – a name that is a blend of “group” and “coupon”. Gross billings increased from $30 million in 2009 to $713 million in 2010 (Pepitone 2011). In 2010, Forbes declared Groupon as the “fastest growing company ever (Steiner 2010). By 2011, the company had a subscriber base of over 150 million, gross billings of $1.2 Billion, and went public, raising $750 million in...
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...Groupon Economic Forces Understanding economic trends is helpful in determining areas that are ripe for new business ideas and areas to avoid. When the economy is strong people have more money to spend and are willing to buy discretionary products and services. In contrast when the economy is weak people have less money to spend and are more reluctant to do so. (Barringer & Ireland, 2012). A weak economy provides opportunities for companies to sell upscale and everyday items at a “discount”. The founder of Groupon realized this opportunity and took advantage of it, however it was not an instant success, and it took the failure of an idea in order to prosper. The Idea An idea is defined as a thought, an impression, or a notion. An idea may or may not meet the criteria of an opportunity. Most entrepreneur ventures fail because there was no real opportunity to begin with; therefore it is important to understand that there is a difference between the two. (Barringer & Ireland, 2012). Andrew Mason, founder and CEO of Groupon had the idea for a website that would bring people together to solve problems collectively. Mason was offered $1 million in funding to develop the idea he created called the Point. The Point would herd people into collective social actions: marches, protest, fundraising, etc. (Saporito, 2011). Mason realized that social action was not profitable and the idea was failing. In an interview, Andrew Mason the founder of Groupon said, “I think the...
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...1) Groupon Now! contains many features of contemporary e-commerce. They display an excessive amount of online market research qualities due to their personalization and customization to each and every customer. They target their customers by analyzing their customer’s location, preferences and needs. After that Groupon then identifies “deals” with local and/or national companies. This also displays a great amount of Global reach as Groupon spans throughout many countries. Interactivity also is a huge part because Groupon creates strong communication channels between both the merchant and the customers whilst also retaining a personalized customer service to both. There is a massive amount of information density because Groupon maintain all customer profiles in order to share many promotions according to the place they are in as well as always improving the interactions between them and merchants. 2) The value Groupon has for subscribing merchants is to eliminate the risk of not getting enough customers for a particular offer. This is due to the deal only becoming available when a certain number of customers sign up for a daily deal. What this does is let the merchant treat the coupons as quantity and while also giving them valuable data about any potential clientele. Also, as we were told in the video, Groupon allows merchants to personalize their deals so they only come on, and also taken down, at specific times of the day. This allows for merchants to try and attract customers...
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...Critique Paper: Why videos go viral Kevin Allocca is the trends manager at YouTube, this is a fancy title for someone, as he puts it “watches YouTube videos all day and gets paid to do it”. He claims that all successful videos meet one of three criteria mentioned in his TED talk. The purpose of this critique is to explain these points, evaluate them and then explain how Kevin’s video has influenced me with regards to social media marketing and how these points can be applied to marketing. The Big Three Points Kevin Allocca attributes the success of all videos with many views on YouTube to them having met one of three critical factors. The first of these factors is the influence of trendsetters. Trendsetters are someone who initiates or popularizes a trend, or in this case causes a video to go viral. This can be done in a variety of ways; it can even be something as simple as tweeting about it. Jimmy Kimmel did this with “double rainbow” when he tweeted about it on July 11th 2010 and caused it to go from almost no views when it was posted on January 18th 2010 to over 400 000 by the end of July 12th 2010 (Allocca, 2011). This however isn’t an isolated phenomenon; this happens everyday with celebrity endorsement and people even making their living by showing popular YouTube videos to others such as the comedy central program Tosh.0 The second point that Kevin made was that communities of participation often turn mediocre success into phenomenal success. This often...
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...Chapter 2: Deals Galore at Groupon Video Case Questions: 1. What features of contemporary e-commerce does Groupon Now! Utilize? a. I think that Groupon Now is utilizing the mobile app as a way to allow both consumer and merchant to communicate with each other. Now, most websites have a mobile app or something similar so people can be connected all the time, like Ebay. It’s very easy to use and therefore increases the chance of consumers purchasing a deal. It allows for people to share things with their friends, which is vital in social networking and allows for the service provider to receive more customers. It also uses personalization as a tool. It’s also great that a subscriber can show the coupon on the phone rather than have to print it out like other coupons. It provides value to customers and it’s providing a service that is in demand for many people, not just college students looking to save a dollar. It also gives buying power to the consumers and still maintains control for the merchant. 2. What value does this service provide subscribing merchants? What value does it provide customers? b. It provides merchants the value of control over their revenue and when and how much to release the deals for. The fact that the deals are limited in time and quantity helps merchants know the business they might have and be prepared for it. It’s also good that a certain number of coupons must be sold, so that the merchant is making some profit from the...
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...Assignment 1 Assignment 1 is worth 10% of your final grade, and should be completed after Lesson 3. It has two parts. * Part A: seven short-answer questions worth a total of 35 marks * Part B: two case analyses worth a total of 65 marks Part A: Short-Answer Questions (35 marks total) Answer each question in one to two paragraphs. (5 marks each) 1. What are the major similarities and differences between the Google and Yahoo business models? Google and Yahoo are very similar, but there are also key differences between the two companies. Each site is considered a destination and is marketed as a place where consumers can fulfil their time on the internet by utilizing many different functions. Both of the companies can be considered B2C, or Business to Consumer companies. This means that they provide their services to consumers. Google and Yahoo are both portals, which means they offer users not only a functional search engine, but also a bundle of integrated services and content. This includes the ability to read the news, meet and chat with others and search for different entertainment such as celebrity gossip. Yahoo offers a search engine to users, but it also works to provide news, chat, e-mail and music. Google focuses mainly on being the very best search engine on the market. The revenue model for Google comes mainly from advertising and referrals from affiliates. On the other hand, Yahoo receives its revenue from advertising, subscription fees and...
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...Table of Content Abstract 3 1. Introduction 3 2. M-Commerce 4 3. Groupon 4 3.1 Groupon’s Business Model 4 3.2 Groupon’s Target Audience 6 3.3 Groupon’s Market Positioning 7 3.4 Groupon’s Strategy 8 3.5 Groupon’s Retail Mix 9 3.5.1 Groupon Consumer Category (Groupon, 2013) 9 3.5.2 Groupon Merchant Tools (Groupon, 2013) 9 3.5.3 Groupon Resources (Groupon, 2013) 10 3.5.4 Groupon Socials Innovation (Groupon, 2013) 10 3.6 Groupon’s Direct Competitors 11 4. Suggestion for Groupon’s Competitive Advantage 12 5. Conclusion 13 Works Cited 14 List of Figure Figure 1 Atonomy of Groupon Deal 5 Figure 2 Comparision of Service Offered 6 Figure 3 Groupon Customer Satisfaction Rank 7 Figure 4 Comparison of Revenue 10 Abstract In this paper I am going to briefly explain on an exploding new and fast growing retail model called Groupon. Groupon is a type of Electronic Commerce; it is believed that e-commerce or E-Retailing will surpass brick and mortars format as the method of choice for consumer near future and it’s already proven in some country. Most of my finding is from electronic source which I have cited it accordingly. It is difficult to obtain reports and details about Malaysian Groupon so most of the reference in this paper are summarised from global reports, trends and researched on Groupon worldwide. 1. Introduction Electronic commerce or commonly known as E-Commerce; Is where the buying and selling of products or services...
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...total of 35 marks * Part B: two case analyses worth a total of 65 marks Part A: Short-Answer Questions (35 marks total) Answer each question in one to two paragraphs. (5 marks each) 1. What are the major similarities and differences between the Google and Yahoo business models? -Value Proposition – Through search engines users get useful responses to their queries with both Yahoo and Google. Google offers hosted web-based Google apps, and Android an open source mobile software platform to create applications for mobile devices. Yahoo has also been attracted to other ventures such as Dialpad to compete with Skype. Google has targeted Ads using Adwords and they extend advertising campaigns to network members through Adsense. Yahoo offers location specific home pages to access news relevant to your area. -Revenue Model – Google earns larger revenues through advertisers buying ad space on google websites, sale of enterprise products and advertising through network members. Yahoo also sells ad space but competing with google for revenue from enterprise products has created a large gap between Yahoo and Google. Market Opportunity – Google has a large market opportunity served through Internet users, advertisers, google network members, mobile device owners, and its continued efforts at entering new markets such as cloud music. Yahoo continues to fall behind google well also trying to brake into new markets such as online video space. Organizational Development...
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...Analysis of business-related messages Donna Smith COMM/470 April 27, 2014 Elizabeth Kachmor Analysis of business-related messages In business today most communication is relayed through electronic means. This is done using e-mail, texting or video chats. There are advantages and disadvantages to using virtual communication, examples of the advantages are increased productivity, ability to work at home, or in the field, and less time in the office. There is also the advantage of being able to connect to staff or clients without having to access the information in the office. Some of the disadvantages are being available twenty four hours a day, and loss of personal communication. There is also the possibility of miscommunicating messages. According to Deborah Roebuck, when writing for business it is essential that the writer formulate the writing prior to sending it with the process entailing “determining your purpose, analyzing your audience, organizing your thoughts, establishing a logical order, constructing your draft and editing and polishing your draft using the 7 Cs” (Roebuck ,2006, pg.31). To communicate effectively in a business environment it is important to create a system or follow a system such as the one mentioned previously. To many times those of us, in the business field are too busy to take the time to review what we are sending. This leads to confusion on the part of the receiver and creates further time researching clarification on the original e-mail...
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...Electronic Commerce Assignment #1 Stacey Cruise 3135149 Friday November 8, 2013 Part A 1. Both Google and Yahoo! can be classified under the ‘Portal’ B2C business model, as both sites offer and integrate a wide package of content including: social network services, news, e-mail, and the ability to search content. The major reason web surfers use either site is simply because these services offered to the public are free. Individuals are permitted to utilize these services free of charge because both companies receive revenues through advertisements. Google for example will only receive payment from their advertisers once a searcher “clicks” on their ad. Both companies also realize the same market opportunity and compete for the same market share with other organizations including: Bing, Ask, and AOL. One of the major distinctions between Yahoo! and Google is the competitive advantage both companies offer to the public. Although both provide a wide range of features, Google maintains their own algorithms in order to achieve the most accurate search results whereas Yahoo! concentrates more on other services they offer such as Yahoo! local or Yahoo! answers allowing them to better compete with Google for market share. 2. One of the common difficulties a company is confronted with when expanding the reach of their market is growing too quickly. Physical space may become too small, and will no longer be sufficient in supplying customer demand. It also becomes easy for...
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...Instructor’s Manual: Chapter 2 E-commerce Business Models and Concepts Teaching Objectives • Identify the key components of e-commerce business models. • Describe the major B2C business models. • Describe the major B2B business models. • Explain the key business concepts and strategies applicable to e-commerce. Key Terms business model, p. 65 business plan, p. 65 e-commerce business model, p. 65 value proposition, p. 66 revenue model, p. 66 advertising revenue model, p. 67 subscription revenue model, p. 67 transaction fee revenue model, p. 67 sales revenue model, p. 67 affiliate revenue model, p. 67 market opportunity, p. 68 marketspace, p. 68 competitive environment, p. 72 competitive advantage, p. 72 asymmetry, p. 72 first-mover advantage, p. 73 complementary resources, p. 73 unfair competitive advantage, p. 73 perfect market, p. 73 leverage, p. 73 market strategy, p. 74 organizational development, p. 74 management team, p. 74 e-tailer, p. 78 barriers to entry, p. 78 community provider, p. 80 intellectual property, p. 81 content provider, p. 81 portal, p. 84 transaction broker, p. 85 market creator, p. 86 service provider, p. 86 e-distributor, p. 88 e-procurement firm, p. 88 B2B service provider, p. 89 application service provider (ASP), p. 89 scale economies, p. 89 exchange, p. 89 industry consortia, p. 90 private industrial networks, p. 90 industry structure, p. 93 industry structural analysis, p. 94 ...
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...INTRODUCTION Forever 21 is an American chain of fashion retailers with its headquarters in Los Angeles and sales of $3.7 billion in 2013. Forever 21 began as a 900 square foot store in Los Angeles in 1984, and has grown to sell their clothing lines Forever 21, XXI Forever, Love 21, and Heritage in over 600 stores in the Americas, Asia, the Middle East, and the UK. More than 60% of its apparel is manufactured in China and the average store size is 38,000 square feet. According to Adrienne Tennant, an analyst at Wedbush Morgan Securities, and Andrea Chang of the Los Angeles Times, Forever 21 is known for its trendy offerings and its economical pricing. The company sells clothing, accessories, and beauty products for women, men, and girls. The company has been involved in various controversies, ranging from labor practice issues and copyright infraction accusations to religion. HISTORY Forever 21 founders Do “Don” Won Chang and his wife Jin Sook Chang emigrated from South Korea to the United States in 1981.The luxurious cars of those in the retail industry influenced Don to enter the garment industry and so Fashion 21, later renamed Forever 21, was established. Don is the Chief Executive Officer and Jin Sook the Chief Merchandising Officer, with a combined net worth of $5 billion. As of September 2013, the couple ranked 264 in Forbes’ World’s Billionaires list and 90 amongst America’s wealthiest. Their two daughters joined the business in 2009, Linda leading the Marketing...
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...CHINA’S NEWEST SHOPPING CRAZE Last month, Fiona Li did what millions of Chinese shoppers do to find a bargain: she went online. A few clicks later, she had a lead on where to buy the consumer goodies her brother wanted for his new apartment. Instead of reaching for her credit card, though, she jotted down a time and a place: 8 p.m. at a downtown electronics store. That evening, Ms. Li and her brother joined 15 strangers at the store to demand a group discount on a new television, refrigerator, and washing machine. Salespeople grumbled at the tactic, but the group refused to buckle. After two hours of haggling, and several walkouts by group members, the store manager agreed to a 10 percent markdown on the three items. Li, a marketing assistant, went home with a smile on her face. "We wanted to save money, and finally we did it," she says. "It's in our nature, whether we're rich or poor, and if we can save money this way, why not?" Welcome to China's newest shopping craze, tuangou, or team buying. By combining the power of the Internet to compare prices with the stealth tactics of the flash mob, team buyers are driving hard bargains in the world's hottest economy. Dozens of team-buying websites have sprung up to catch the trend, which first began in online forums and chat rooms. Typically, shoppers looking for the same items find each other online, then band together offline to negotiate special deals on electronics, home furnishings, and automobiles. Some team buyers approach...
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