Preview

Groupon Case Study Essay

Satisfactory Essays
Open Document
Open Document
173 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Groupon Case Study Essay
(Situation – Distilling the case) During only three years from its inception, Groupon experienced an explosive growth from a small startup into a global enterprise with 11,500 in nearly 50 countries by the end of 2011. But within all its fame and promising successful trajectory, Groupon operated at a loss every year. (We can use the income statements exhibit presented in the case)
(Trigger) Given the simplicity of the business model, Groupon was facing great competition not only from over 2000 clones worldwide but also from giants like Google and Facebook. Although the company was spending heavily on advanced search engine advertising, online marketing, customer service, and its merchant sales force (45% of company’s employees), they were
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Cupon Wars
    • 1983 Words
    • 8 Pages

    Cupon Wars

    This case is about Groupon and LivingSocial, two organizations involved into the sell coupons business. Groupon is the largest and leader in the market; Living social is trying to catch up customers from Groupon. Groupon has more the 50 million subscribers and valuable in more than 6 billion dollars (turned down this offer from Google) instead Living social has 17 million members and the business is valuated in 1 billion dollars. One cause of this advantage is the success that Groupon had in 2010, when obtained a significant growth, in fact Groupon was in Q4 in 2009 and in Q1 in 2010.The rise was reflected in nearly all major sales per metric, from average buyers per deal (111%), average deal price (from 27,2 dollars to 38,36 dollars), average gross per sale (102 percent) and unique visitors (from 900 000 in September of 2009 to 3 000 000 in march 2010). In 2010 LivingSocial was the second group coupon site visited with a percent of 0,033 to 0,036 respects the first.…

    • 1983 Words
    • 8 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Assignment 2: Case Study
    • 686 Words
    • 3 Pages

    Assignment 2: Case Study

    Brett and Kathy’s filing status used to be married, filing jointly. Although both of Brett and Kathy want to get divorce, they have not divorced considering financial pressure and their three children. From 2014, Brett begins to contribute more than Kathy do to support the home and their children. Also they want to file income tax returns separately. Thus Brett believes he can claim head of household filing status.…

    • 686 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Groupon Swot Analysis
    • 589 Words
    • 3 Pages

    Groupon Swot Analysis

    Groupon happen to be on death roll in the market industry when they recently pull out from the Turkish market and firing its CEO Mark Anderson. March 1st 2013 was the worst of times for Groupon (GRPN). “They reported a crushing net loss of 81.1 million dollars and an EPS decline of 12 cents for the fourth quarter of 2012. Groupon’s shares declined 26% as investors were put off by the fact that brutal earnings had occurred for a second consecutive quarter.”…

    • 589 Words
    • 3 Pages
    Good Essays
    Read More
  • Better Essays

    Albatross Anchor Unit 3 - 1
    • 1481 Words
    • 6 Pages

    Albatross Anchor Unit 3 - 1

    This case study references a business called Albatross Anchors. Albatross is a small, family business that manufactures two different types of anchors. Albatross Anchors case study is about a few challenges that are being called out into the open in hopes to fix. While some problems may be minor at best, other 's could lead to major profit loss. Most of these problems are due to the "shabby and disorganied administrative office" and because it 's an "antiquated, worn, and technology deprived plant", as stated. If these problems are dealt with immediately, there 's no telling how much the company will stand to lose.…

    • 1481 Words
    • 6 Pages
    Better Essays
    Read More
  • Good Essays

    Case Study Analysis
    • 727 Words
    • 3 Pages

    Case Study Analysis

    Officer Smith did have reasonable suspicion to make the initial vehicle stop. The taillight appeared to have been broken and there was colored tape so there was probable cause to pull the driver over. Police Officers may pull a vehicle over for many reasons like traffic violations, equipment violations and even suspicious activity whenever they have a reasonable articulable suspicion that a public offense is occurring or has occurred.…

    • 727 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Marketing Strategy of Groupon: Case Study
    • 534 Words
    • 3 Pages

    Marketing Strategy of Groupon: Case Study

    Case Study 14.1 talks about the new internet coupon sensation: Groupon. Groupon was recently discovered in Chicago to gain exposure to new businesses through discounted membership deals and has been on the rise ever since. This particular case study attempts to elaborate on the success of Groupon and how it works. The e-coupon was designed to help business owners appeal to new prospective consumers by advertising group discounts on products and services. So far, the website advertises business in 45 major U.S Cities and has over 2 million subscribers. There are a range of businesses that are advertised on the website. You can find discounts on spa packages, concert tickets, dinner and dessert specials, and more. The way it works is, the business owner makes a deal with the website by offering a discount on a product or service and tells how much they are willing to accept for it and the amount they’re willing to give away. Then, Groupon advertises the offer for a limited time and receives a finder’s fee once consumers purchase the deals. The business has full control over the minimum and maximum number of deals they’re willing to offer. If the deal doesn’t appeal to consumers then there is no financial loss to the business owner. The intention of the business owner is not to gain a lot of profit from the deals made; rather the intent is to drive traffic to the business once the deal is over. Moreover, the benefit of Groupon to the producer comes after the deal is over and the benefit of Groupon for the consumer comes while the deal is still going on.…

    • 534 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Groupon
    • 850 Words
    • 3 Pages

    Groupon

    In September 2011, Groupon dramatically changed the way it reported revenue. Prior to this date, Groupon recorded revenue acting as a principal, not an agent. Recording revenue in this manner means that Groupon was recording a “cost of goods sold” entry with each “revenue” entry on every sale it made. These entries heavily inflated the amount of revenue Groupon was reporting. Although net income was not affected by this, many other things were such as revenue growth rates and gross profit margins (Hilton, 2013). Herein lies the problem, Groupon is an agent, not a principal. To be considered a principal, a few criteria must be met. These criteria include, “the company is primarily responsible for providing the product or service to the customer”, “the company owns inventory prior to a customer ordering it and after a customer returns it”, and “the company has discretion in setting prices and identifying suppliers” (Spiceland, Sepe, and Nelson 2013). The nature of Groupon’s business violates these aforementioned criteria. They do not carry any inventory or inventory risk on the coupons they sell for discounts. Also, they do not hold the primary responsibility for providing the product or service they are selling the discount for. Groupon has now gone from using the gross method to the net method for reporting revenue.…

    • 850 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Group Interaction Case Study
    • 999 Words
    • 4 Pages

    Group Interaction Case Study

    In my placement, group interaction took place in a staff and workers meeting to discuss how Mr.P was progressing and how his care plan was being achieved to the best of its ability. All workers involved were seated around a table as the discussion continued. Care Manager Tracy began to talk about Mr.P's care plan and how he has been getting on in the home. Feedback was given by several members of staff about how he has developed and became much more confident as and when he was approached and that he was getting along with other service users much easier.…

    • 999 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Bis 375 Wk5 Emerging Technology and Trends Paper
    • 661 Words
    • 3 Pages

    Bis 375 Wk5 Emerging Technology and Trends Paper

    Groupon presents a unique opportunity for businesses interested in selling their services or goods online through a extremely popular site. Groupon allows non-tech savvy businesses to turn to e-business processes to make money for everyone and saving its customers money in return through word of mouth recommendations and repeat business. Groupon handles the SCM through is website, doing most of the work for the business. It is as if Groupon is the storefront where a customer purchases a service or product. Groupon then issues a voucher or coupon for the customer to redeem at the business site or online store. The business is paid based on how many vouchers or coupons Groupon sold minus the fees that Groupon keeps. The business keeps track of its sales for its SCM processes to meet the demand and deliver its services or products to its customers. Through a new e-business concept businesses have increased their revenue while Groupon…

    • 661 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Groupon Swot Analysis Paper
    • 617 Words
    • 3 Pages

    Groupon Swot Analysis Paper

    (Abdullah, 2011)In terms of Porter’s forces of analysis there is a high threat of new entrants as there are hardly any barriers to entry in terms of setting up a business offering the same products. Groupon’s business model has no comparative advantage as there are potentially high levels of substitute competition as consumers will quickly move onto other companies that are offering better deals as well as merchants switching to be able to retain a higher level of profit than what is being offered by…

    • 617 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Home Depot Inc

    • 876 Words
    • 11 Pages

    Home Depot Inc

    Current Situation     October 12th, 2000 the company announced lower then expected earnings for the 3rd and 4th quarter Largest one day drop (28%) to $35, a $33 billion loss in market capitalization Drop thought to be due to slowing economy, overvaluation of stock price or problems with the company’s future strategic direction Economy had experienced uninterrupted growth since 1992…

    • 876 Words
    • 11 Pages
    Powerful Essays
    Read More
  • Better Essays

    Groupon Case analysis
    • 2615 Words
    • 11 Pages

    Groupon Case analysis

    Groupon, a new internet coupon sensation, was formed in Chicago to gain exposure to new businesses…

    • 2615 Words
    • 11 Pages
    Better Essays
    Read More
  • Good Essays

    Case Study: Verizon
    • 241 Words
    • 1 Page

    Case Study: Verizon

    In order for Verizon to maintain its dominance in market share, subscriber count, and profitability, in the hyper competitive wireless industry, Verizon must achieve its 2016 organizational goals of growing top line revenue by 5%, reducing operational cost by 10%, and increasing customer satisfaction by 3% (Fiercewireless, 2016). Therefore, Verizon has established clear, concise, and specific objectives for each of its various companies, divisions, departments, and teams based upon their role within the organization. By doing so, Verizon is able to ensure employees throughout all parts of the organization clearly comprehend their departmental, team, and individual objectives, are contributing towards the accomplishment of the over arching…

    • 241 Words
    • 1 Page
    Good Essays
    Read More
  • Good Essays

    Bma Case Summary
    • 659 Words
    • 3 Pages

    Bma Case Summary

    The case study our group will be presenting on is Bandon Medical Associates (BMA), a small physician group practice based in Oregon founded by Dr. Delgado and a colleague about 20 years ago. The small practice is unfortunately, facing a serious budget crisis in excess of $145k, when the senior physician and others believed there would be a surplus of nearly $100k. With this unforeseen quandary, BMA will not be able to procure new equipment that is in high demand or pay physicians their anticipated annual bonuses. Our goal is to analyze the perplexity of how BMA could possibly be facing a deficit of $145k and present our findings after carefully reviewing their financial processes and overall budget.…

    • 659 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Sunflower Incorporated Case Study STRA
    • 1645 Words
    • 6 Pages

    Sunflower Incorporated Case Study STRA

    This case refers about a large distribution company which resells products related to snacks. This company undergoes a change in its financial reporting system which was supposed to increase its profits and decrease its cost as well as to compete with its rivals.…

    • 1645 Words
    • 6 Pages
    Powerful Essays
    Read More