Groupon was founded in 2008 and has since grown rapidly, reaching over $1 billion in revenue after only 16 months. It now operates in over 500 markets across 44 countries. Groupon's business model involves partnering with local businesses to offer daily deals and coupons, with both the business and Groupon receiving half of the revenue from each deal. While Groupon has seen great success, concerns exist around whether businesses can retain customers acquired through deals and if demand will remain high enough for Groupon to continue expanding. Competition in the daily deals space is also intense, with LivingSocial being Groupon's main competitor. The future of Groupon and daily deal sites remains uncertain.

1. Groupon
By: John Gallagher, Kyle Grant and Forrester Pierce

2. History of Groupon
•Founder Andrew Mason
•ThePoint.com (November 2007)
•Tipping Point Strategy
•Utilize Social Media for organization

3. Groupon’s Emergence
• Started November 2008
• Overwhelming amount of cool choices
• Collective Buying Power
▫ Tipping Point Strategy
▫ No Inventory
▫ Deal of the Day

4. Immediate Growth
• Estimated over $1 Billion after 16 months
• Gained 350 employees within 1.5 years
• Has over 50 million registers users now
• Now has 500 markets within 44 different
countries

6. Expansion
• Now serves 500 markets in 44 countries
• Re-branded acquisitions
▫ MyCityDeal (Europe, 2010)
▫ ClanDescuento (South America, 2010)
▫ Beeconomic.com (Singapore)
▫ Qpod.jp (Japan, 2010)
▫ SoSasta.com (India, 2011)

7. Controversy
• http://www.youtube.com/watch?v=vVkFT2yjk0
A

8. Business Model
• http://www.youtube.com/watch?v=_xgPtqT0XBY
• No upfront cost for customers
• Create profile where Groupon can collect info
• Companies contact Groupon
• One “Groupon” per day to customers through email
• Half of deal revenue goes to the company, other half
to Groupon
• Potential Problems
• Fun Facts

10. Competition
• Virtually no barriers to entry
in deal-of-the-day market
▫ Over 500 sites worldwide
• Top Companies
1. Groupon – 11 million
viewers/month
2. Living Social – 7.2 million
viewers/month
3. Gilt Group – 800,000
viewers/month

11. Living Social
• Launched in 2007
• December, 2010 partnered with Amazon
- Have invested $208 million in Living Social
• Net loss of $558 million loss last year
- Blamed on rapid expansion

12. Google Offers
• Launched June, 2011
- After failed attempt to buy Groupon
• Differentiated from Groupon because limitless
purchases
• Integrated Google Checkout and Google Wallet

13. Groupon Now!
• http://www.youtube.com/watch?v=Vgk1YfInZo
M
• Mobile App
• Real-time coupons for retailers in area
• Example of buying pizza

14. Problems with Groupon Now!
• Push vs. Pull
Notifications
• Similar to an app
that Living Social
tried to implement

15. Groupon: Good or Bad for Business?

16. Problems with Groupon
• Retailers unable to retain customers
• Fear that people buying Groupon are already
customers of retailer
• Not enough marketers using Groupon
• Overcrowding at the time of coupon

17. Groupon on the Decline?
• Fear that it will collapse as quickly as it
succeeded
• Already showing signs of decline with stock price

18. Questions
1) What type of services do you think have the
most success with Groupon?
2) Do you think there is enough demand for
Groupon to venture into smaller towns and not
only operate in large cities?
3) What do you think the future of Groupon and
other daily deal websites will be?

19. Works Cited
• http://www.forbes.com/sites/mashable/2011/01/07/the-history-of-groupon/
• http://www.thepoint.com/doc/learn_more
• http://en.wikipedia.org/wiki/Groupon
• http://articles.businessinsider.com/2012-02-01/tech/31011853_1_livingsocial-groupon-
amazon
• http://www.itworld.com/software/246803/groupon-shares-benefit-livingsocials-losses
• http://en.wikipedia.org/wiki/Google_Offers
• http://en.wikipedia.org/wiki/LivingSocial
• http://blogs.forrester.com/sucharita_mulpuru/11-11-07-
for_groupon_the_really_hard_work_starts_now
• http://en.wikipedia.org/wiki/Groupon#Business_model
• http://news.cnet.com/8301-1023_3-20067799-93.html
• http://seekingalpha.com/article/507591-is-groupon-at-the-end-of-its-descent
• http://www.sandiegopchelp.com/future-of-groupon-and-daily-deals/
• http://finance.yahoo.com/blogs/daily-ticker/bad-news-groupon-product-were-betting-
future-doesn-130945102.html
• http://www.youtube.com/watch?v=26W7-O22I7Y
http://money.cnn.com/2011/05/09/technology/groupon_now/index.htm