999 words 4 pages

Groupon is a ‘Deal-of-the-day’ website that features discounted gift certificates usable at local or national companies that was launched in November 2008. The first market for Groupon was Chicago, followed soon thereafter by Boston, New York City, and Toronto. By October 2010 Groupon served more than 150 markets in North America and 100 markets in Europe, Asia and South America and had over 35 million registered users.

A sum of $1 million was invested to develop the idea and in April 2010, the company was valued at $1.35 billion. According to a December 2010 report conducted by Groupon’s marketing association and reported in Forbes Magazine and the Wall Street Journal, Group was projecting that the company is
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Having an online business model, it is critical for Groupon to have the website up- & running 24/7.

Each and every channel for positioning their deals and offerings are web-based and are enforced by other (social) media platforms such as Twitter, Facebook & Flickr. Technology and Online media tools and Internet are of extreme importance since Groupon’s entire operation depends on information sharing through email, via the famous Groupon app especially designed for the mobile device, or for replying to questions and/or claims from customers and strategic partners everyday.

Groupon’s daily discount deals spread rather quickly through email. Subscribers like to forward the “deal-of-the-day” as a recommendation to their friend. In a world of social media and online personal suggestions, an email suggestion can be very meaningful. Moreover, Subscribers are given a $10 incentive to refer to friends, so people are extra motivated to spread the word about Groupon to their personal networks.

Consider its commitment level to eBusiness.
Groupon is a Pure Play company since its operations is carryout through online principles and concepts hence no physical stores are available.
The only contact to reach its Subscribers is through email (mailing lists) and mobile updates via the Groupon application.

How does it use 1.0, 2.0, 3.0? How are these choices strategic and aligned with its


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