Groupon Corporate Communication

Topics: Strategic management, Business model, Customer service Pages: 11 (3054 words) Published: December 28, 2012
Topic : Groupon (Part B)

Govinderjit Singh (14134)
Malik Muhammad Humza (15205)
Mohamad Firdaus bin Mohamad Adib (16979)
Mohd. Syafick Effandi bin Taufick Effandi (16941)

Management Strategy

Strategic Management is about identifying and implementing the strategies needed to fulfil an organisation mission, vision and objectives, also to achieve better performance and a competitive advantage for their organisation.

In Groupon case, we have found that the organisation is suffering lost notably in its stock even though during its first few years their revenue was increasing. This may because the lack of management in handling crisis and identifying the steps needed to gain profit. Strategically Groupon need to focus on its consumer and management.


Groupon oversell their vouchers.

A recurring theme among disgruntled Groupon customers is that the (often small) businesses can’t keep up with high order demands. Since Groupon takes its cut upfront, it becomes the customer’s problem when the vendor can’t deliver in a timely manner -- or at all. This is one of the major problems why consumer is turning against Groupon.

What Groupon should do is to minimise the amount of voucher sold per business, as not all can fulfil what is stated in the internet. Groupon should firstly identify and communicate with that said business and find the best strategy or method to handle the customer. A small muffin shop with four employees can’t handle 500 orders a day. That is absurd, it’s like Groupon is milking out every each of money from its “employee”.

False Advertising

The use of false or misleading statements in an advertisement. Groupon as a global company should not be doing this but claiming one of their products the best which in fact is not known at all. Incomplete comparison. A product in Groupon claims by eating this product, the person can lost 15 kilos in 2 week.

Groupon should first test and verify commonly known as V&V which stands for verification and validation. It is a procedure that is used together for checking that a product, service, or system meets requirements and specifications and that it fulfils its intended purpose.

Unsatisfied Customer Service

Unreturned phone calls and emails. Delaying refunds or no refunding at all. Groupon customer service is a bottomless pit of frustration for subscribers. If the quota is not reached, the deal is off, and no one is charged for what they promised to buy but refunding is difficult. By not refunding they already broke the Groupon Promise that stated “If the experience using your Groupon ever lets you down, we’ll make it right or return your purchase. Simple as that.”



Groupon may be the largest deal-a-day business, but with basically no barriers to entry, it has 383 rivals, according to Yipit. And the growing crowd of rivals threatens to steal customers and is driving up marketing costs. A private held company, LivingSocial said will be the closest Groupon competitor when the company did a ground breaking deal (selling Starbuck and Amazon coupon).


As it can be seen, Groupon has acquired many daily-deals business. With this acquisition there will always come a few bad things. If a company acquired is making lost, when Groupon bought it Groupon just not paying for the company but also its loss and debt.

Groupon should not just buy any company. Yes they make some research but what good if buying a company that have been studied and still making loss. Therefore, Groupon should for now stop buying other companies. Tackle Groupon own mission and vision first in the market, and then they can expand. Expanding is good but do it step by step. Take own time, don’t rush.


After acquiring many daily-deals company, there will be more employees. The leader or CEO of Groupon can’t communicate with them all as the employees are dispersed thought out the world. It’s quite difficult...
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