Deal Reaches Critical mass :- Groupon decides which deals are featured in a ZIP code area
1. CMTP PRESENTATION ONPresented By:Neha AmdapurkarShivendra ChaturvediMukesh RaghuwanshiOm prakash TripathiGROUPON: AN EMERGING GIANT IN SOCIALCOMMERCE
2. Engaged in Social commerce & launchedin November 2008 in Chicago. Growth with 25 millions subscribersover 2 years. Being second Company in web history to crossthe $ 1 million valuation mark within 7 months. Offered Online group buying deals with deepDiscount to subscriber. Key people- Andrew Manson (CEO)INTRODUCTION
3. The website socialcommercetoday.com defines social Commerce as asubset of E-commerce it involves online media that supports socialinteraction & to assist online buying & selling products & services. Transaction carried out Electronically at different levels:- B2B- B2C- C2C E-Commerce Applications:Email, messaging, documents, accounting & finance system,Order & shipment information, enterprises & client information etc.E-COMMERCE
4. Reduce time & Cost Provide different variety at one platform. E-Commerce offered Variety of trade opportunities-Retail Stores- Book, music & toy store- Auction sites- railways/airlines booking online tickets Business ExpansionCONT..
5. • In April 2010 Groupon was the only company to reach $1.35billion valuation faster then YOUTUBE.• There was only one deal on offer on a given day for everysubscriber.• Huge discounts ranged from 50% to over 90%• The success rate of Groupon is reaching high i.e. 98%.• Groupon Revenues based on 50-50 sharing formula.EMERGENCE & GROWTH OFGROUPON
6. BUSINESS MODEL OF GROUPONSign Up OfCustomerWithGrouponSign Up OfMerchantCracking OfDealsCritical MassPaymentReceivedFromCustomer ToGrouponDecision OfGrouponBased onZip CodePayment OfMerchantShareRedemptionOf CouponBy CustomerAt Merchant
7. Nowithstanding its considerable success and rapidgrowth, Groupon had some significant challenges onhand. One of them stemmed from its Business ModelItself.MAJOR CHALLENGE FACED BY GROUPON