Please read thecase and answer the questions thank you
Groupon’s businessmodel is based on the theory that everyone loves a great deal.Groupon is a popular “deal of the day†website offering discountedgift certificates usable at local or national companies. Each day,Groupon e-mails its subscribers discounted offers for goods andservices that are targeted by location and personalpreferences.Customers purchase Groupons through Groupon’s websiteor mobile apps and redeem them with affiliated merchants. Thediscounts are huge—usually 50 to 90 percent off.Groupon makes moneyby keeping approximately half the money the customer pays for thecoupon. Most deals are only valid for several days and have alimited quantity.
live events;Groupon Reserve has premium deals from prestigious brands andcompanies. A mobile app, Snap, offers cash rewards to consumers forpurchasing specific grocery items and sending a photo of theirstore receipt from their phone.Along with expanding services toconsumers, Groupon has refocused also on services for merchants.With GrouponWorks (Grouponworks.com), it provides services thathelp small businesses manage the entire customer acquisitionprocess and more. GrouponWorks services include comprehensiveonline ad campaign management, advice, deals on business supplies,point-of-sale iPad apps to replace cash registers, paymentprocessing systems, inventory management, as well as post-purchaseanalytics.
1. What features of contemporary e-commerce does Grouponutilize?
2. What value does this service provide subscribing merchants?What value does it provide customers?
3. What kinds of businesses are most likely to benefit fromusing Groupon?
4. Are there any disadvantages to the merchant in using GrouponWorks?
