All posts tagged groupon

Is Groupon Bad for Business?

by admin on 21 Jun ’11 in Advertising, Digital, Food, Web Trends, YouTube, blogs, community, marketing, online shopping with No comments

Chicago-based start-up, Groupon has taken the world by storm with their daily deals, offering consumers deep discounts from featured retailers. But is their business strategy focused less on the merchants who offer these deals and more on their own profits? We’ll begin this post with an example of a Groupon offer hurting a business and follow it up with an example of how it has helped a business in order to try and determine what can be done to create a mutual benefit for consumers, merchants and Groupon.

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Groupon valued at one billion dollars! Holy cash cow!

by admin on 19 Apr ’10 in Enlighten Me, Fashion with No comments

Social coupon sharing site, Groupon, has now joined the exclusive billion dollar club with the likes of Facebook and Twitter. This is a remarkable feat considering that Groupon only caters to 54 cities in the U.S.,  which pales in comparison to the global reach of the other two social networking behemoths. And, to really appreciate this billion dollar number remember that the much publicized geo-location service, Foursquare, is valued at a mere $80 million.

According to statistics from Compete.com, Groupon’s site traffic has more than quadrupled over the past year. What Groupon has going for themselves is the ability to directly tie-in a simple, but genius business model. When consumers decide to participate in the deals posted on their site Groupon receives a cut of the profits, which some have suggested is as high as 30% of the overall revenue generated by participating vendors. This is a great chunk of change and a practice that future online start-ups should try to emulate.