The e-marketing activities that Groupon undertake include: (1) encouraging members through easy registration and access to immediately avail of enticing offers; (2) being able to publicly announce the best deals from various…
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eferral system which enables availment of Groupon bucks (Bulygo & Metrics, 2012); (6) offering purchases for a friend which could enjoin more to attest and appreciate the benefits accorded by Groupon; and (7) entrenching more awareness to products and services offered by merchants through word-of-mouth and through social networking sites; among others. As emphasized by Sviokla (2009), the keys to enhanced customer satisfaction stems from Groupon’s ability to: “(1) make the interaction simple; (2) create a sense of urgency; (3) energize customers to enjoin others to join; and (4) make the experience a lot of fun” (p.1).
executed well? The quality of these activities fit with the overall strategy, which is consistent with the 5s of internet marketing, which are: to sell, to serve, to speak, to save and to sizzle (Andrew, 2013, p. 7). Its mission was to “treat our customers the way we like to be treated” (Groupon, 2013, par. 3). An important component of the strategy is adherence to “unbelievable customer service” (Groupon, 2013, par. 5). As such, Groupon pledged to achieve the 5s of internet marketing through implementing the activities above-mentioned.
Based on the remarkable performance of Groupon as reviewed from their financial highlights, where it was revealed that “”record billings growth this quarter is a clear signal that customers love Groupons," said Andrew Mason, CEO of Groupon” (Business Wire, 2013, par. 4). As such, the sustained financial success proves that the strategies applied by Groupn were effective and fitted will with the organization’s overall strategy. In addition, since there were a lot of other organizations that mimicked or replicated their business model (Richey, 2010), it therefore attests to the effectiveness of the strategy in achieving financial
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From the above analysis and discussion it can be said that the company Groupon Inc. is one of the fastest rising online businesses. The company’s e-business model uses feedbacks in the form of referrals to get new customers by leveraging existing subscribers.
Also, it is a way for the customer to try a service that the want to try, but at a substantial discount; usually 50% to 90% off the regular price. This is a good situation for both Groupon and the customer. One would not think this was a good idea because it is just coupons.
In addition, the history of the company proves how genuine the strategies of the company are, unlike many other dot-com rockets. The company shows enormous potential for growth as is evident from the fact that the company reached profit
Due to the fact that competition in the market is inevitable, Groupon has had to design operational strategies that outperform rival firms. The market environment in which Groupon operates is perfectly competitive, making the company’s
(Benjamin Pimentel, 2012)
In mid-2012 Facebook, Zynga and Groupon faced declining share prices, Facebook experienced a sharp fall of 47% in share price from its IPO price in mid-may, whilst Groupon has faced a decline of 68% in it’s last 1 year
It works as an assurance contract. Groupon makes money by keeping almost half of the customers pay to a coupon. The company entails small buyers who are disorganized with Groupon which is structured and so this enables local retailers to find there
rs, the global accounting firm of Ernst & Young, as “a material weakness” because their accounting procedures cannot provide “reasonable assurance” as to the accuracy of these accounts as well as an insufficiency of said procedures to provide “an accurate and