Abstract

This case discusses Groupon, which was in the business of offering online deals and discounts based on the tipping point where the customers bought in groups, thereby reaching a specified number to avail of the discounts. Groupon was a big hit initially and was valued at over US$1 billion after just 16 months in business, the fastest company ever to achieve this breakthrough. Later on, the troubles started for Groupon and it was not able to serve the refund requests from retailers and customers, there were customer service issues, competition, etc. Groupon’s CEO, Rich Williams, was formulating strategies for its revival to reach its earlier position. Groupon needed a well-designed turnaround strategy to recoup its position.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the business model of Groupon.
• Understand the pros and cons of daily deals websites.
• Understand how retailers benefit from Groupon.

Keywords

Groupon, Business Model , e-commerce marketplace, Daily Deals site, LivingSocial, Tipping Point, Groupon Goods, Strategic marketing