The starting point for your assignment should be discussing the focus of Groupon's business. While the initial model of "pushing" emails of local coupon deals into mailboxes was successful for a short period, the company's stock prices collapsed shortly after its IPO and it has been trying to re-invent itself, moving to a "pull" model for its core business, moving more heavily into general discount online retailing, and moving into the food delivery market. From a business perspective, it might actually be better for Groupon to solidify its core business strategy before trying to expand randomly in every direction. Its main strength is its early start in mobile marketing; its main weakness, a lack of direction and uneven results with its core group coupon business.
The key to expanding as a platform company is that platforms tend to be natural monopolies. Attracting large numbers of vendors attracts large numbers of customers and then the the large customer base attracts more vendors, starting a virtuous cycle. This means expanding piecemeal into a large range of new markets is not an appropriate business strategy. Instead, it makes sense to target a few carefully selected markets where it might be possible to achieve dominance. This would be done best by forming partnerships or strategic alliances, as the route to success is eliminating competition. As detailed understanding of local buying habits is needed, much of the marketing and other decisions should be done locally.
Sunday, July 9, 2017
How should Groupon enter international markets? As Groupon goes global, should it adapt its business to different cultures? Should Groupon run its business the same way all around the world? How should Groupon expand internationally? How should Groupon expand successfully in so many different places at the same time?
Subscribe to:
Post Comments (Atom)
Summarize the major research findings of "Toward an experimental ecology of human development."
Based on findings of prior research, the author, Bronfenbrenner proposes that methods for natural observation research have been applied in ...
-
One way to support this thesis is to explain how these great men changed the world. Indeed, Alexander the Great (356–323 BC) was the quintes...
-
Polysyndeton refers to using several conjunctions in a row to achieve a dramatic effect. That can be seen in this sentence about the child: ...
-
Both boys are very charismatic and use their charisma to persuade others to follow them. The key difference of course is that Ralph uses his...
-
At the most basic level, thunderstorms and blizzards are specific weather phenomena that occur most frequently within particular seasonal cl...
-
Equation of a tangent line to the graph of function f at point (x_0,y_0) is given by y=y_0+f'(x_0)(x-x_0). The first step to finding eq...
-
Population policy is any kind of government policy that is designed to somehow regulate or control the rate of population growth. It include...
-
Gulliver cooperates with the Lilliputians because he is so interested in them. He could, obviously, squash them underfoot, but he seems to b...
No comments:
Post a Comment