1. GROUPON:
An Emerging Giant in
Social Commerce
Design
Develop
Test
Implement
Analyze
ANUBHI RAIKWAR
M.B.A.
IPER, BHOPAL

2. GROUPON CONCEPT
• Identifying one product or service each day from plethora of options
• Put it for collective buying with discount offer when required number of people
opt to buy it

3. THE EMERGENCE OF GROUPON
Founded in November 2008 by “Andrew Mason”
Subscriber base- around 25 million in 29 countries
Exact revenue not yet known
Estimates - around $800 million and $2 billion
April 2010 - GROUPON valued at $1.35 billion -
the only company to reach $1 billion after YOUTUBE
Offers online group buying deals with deep
discounts to its subscribers

4. THE BUSINESS MODEL OF GROUPON
SUSCRIBERS/
CUSTOMERS
GROUPONVENDOR/
MERCHANT
ENCOURAGEMENT TO BUSINESS TO OFFER AT LOW PRICES TO ATTRACT CUSTOMERS
CONCEPT:
JUST ONE DEAL
EVERYDAY
COMMUNICATION:
• 100 CALLS A DAY
• EMAILS- 70
WRITERS
QUALITY
MERCHANT
PROMOTION
WITHOUT UPFRONT
EXPENCES
GOOD DEALS
DEEP DISCOUNT
AND CUSTOMER
OFFERINGS 50-90%
DEALS IMPROVED
AND WENT UP TO
98%
GROWTH:
7 CALLERS TO 250 SALES
PEOPLE AND 70 WRITERS
CASH
S
O
C
I
A
L
C
O
M
M
E
R
C
E

5. GROUPON
REVENUE MODEL:
50-50
VENDORS CUSTOMERS
VALUE TO
GROUPON BUSINESS MODEL POOLING OFFERINGS FROM MERCHANT
AND SELLING THOSE TO ITS CUSTOMERS

6. GROUPON KEY CHALLENGES
1. Deep discounts
2. Living Social, Amazon and other dozens of small players
3. Emergence of clones all around the world
• 200 - U.S.
• 100 – China
• 500 – other countries
4. One deal per day policy of GROUPON , that enabled clones to survive