1. Choosing a company with an Innovative Business Model
Groupon is a deal-of-the day website that features discounted gift certificates usable at local or national companies. It is based on the daily deal aggregator business model. 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 served more than 150 markets in North America and 100 markets in Europe, Asia and South America and had 35 million registered users.
In addition to generation of revenues, offering daily deals on Groupon has proved to be beneficial for various businesses. Start-ups have gained market share by offering lucrative deals for customers on Groupon and attracting them to their businesses. Once these businesses gain their initial share of customers, it becomes easier for them to retain these customers and even attract new ones, with the help of providing quality product or service. Various businesses, domestic and international, have gained by often providing daily deals on Groupon.
2. Analysing the Business Model and Identifying the Innovation
The Groupon Innovation
Groupon is a daily deal website considered to be one of the top ten innovative Business Models with a huge user base of 83 million across 43 countries. Groupon sells coupons in a very unique way; As mentioned above, Groupon follows Daily deal Aggregator Business Model which enables groups of people who want to purchase a particular product or service to sign up and then seek a volume discount from vendors. These discounts are in the form of daily deals/coupons for products or services. Daily Deal websites typically offer a single product or service a day for a discount and these deals become valid only...