Groupon: Difference between revisions
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==Business Model== |
==Business Model== |
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The company offers one "Groupon" per day in each of the markets it serves. The Groupon works as an [[assurance contract]] using ThePoint's platform: if a certain number of people sign up for the offer, then the deal becomes available to all;<ref>[http://www.reuters.com/article/smallBusinessNews/idUSTRE5592K720090610] Reuters</ref> if the predetermined minimum is not met, no one gets the deal that day. This reduces risk for retailers, who can treat the coupons as [[quantity discount]]s as well as [[sales promotion]] tools. Groupon makes money by getting a cut of the deal from the retailers,<ref>[http://www.washingtontimes.com/news/2009/jul/08/site-leverages-power-of-group-purchases/] Washington Times</ref> as well as through advertising revenue. |
The company offers one "Groupon" per day in each of the markets it serves. The Groupon works as an [[assurance contract]] using ThePoint's platform: if a certain number of people sign up for the offer, then the deal becomes available to all;<ref>[http://www.reuters.com/article/smallBusinessNews/idUSTRE5592K720090610] Reuters</ref> if the predetermined minimum is not met, no one gets the deal that day. This reduces risk for retailers, who can treat the coupons as [[quantity discount]]s as well as [[sales promotion]] tools. Groupon makes money by getting a cut of the deal from the retailers,<ref>[http://www.washingtontimes.com/news/2009/jul/08/site-leverages-power-of-group-purchases/] Washington Times</ref> as well as through advertising revenue. |
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==Competition== |
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Groupon main competitor is BuyWithMe |
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==Marketing== |
==Marketing== |
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* [http://cheapskate.blogs.time.com/2009/06/24/qa-with-groupon-com-founder-andrew-mason/ Time: Q&A With Groupon Founder Andrew Mason]<br/> |
* [http://cheapskate.blogs.time.com/2009/06/24/qa-with-groupon-com-founder-andrew-mason/ Time: Q&A With Groupon Founder Andrew Mason]<br/> |
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* [http://www.washingtonpost.com/wp-dyn/content/article/2009/06/08/AR2009060804020.html The Washington Post: Critical-Mass Discounts Lure Savvy Shoppers] |
* [http://www.washingtonpost.com/wp-dyn/content/article/2009/06/08/AR2009060804020.html The Washington Post: Critical-Mass Discounts Lure Savvy Shoppers] |
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* {http://http://www.boston.com/business/articles/2009/06/14/shoppers_of_the_world_unite/] |
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[[Category:Web 2.0]] |
[[Category:Web 2.0]] |
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Revision as of 08:21, 20 October 2009
| Groupon logo. | |
Type of site | Electronic Commerce |
|---|---|
| Available in | English |
| Owner | ThePoint, Inc. |
| Created by | Andrew Mason |
| URL | http://www.groupon.com |
| Commercial | Yes |
| Registration | None |
Groupon is a deal-of-the-day website that is localized to major markets in the United States. The first market for Groupon was Chicago, followed soon thereafter by Boston and New York City. As of August 2009[update], Groupon serves over 10 markets. Groupon debuted in November 2008 as part of The Point, a platform for collective action. The word Groupon is formed from the combination of "group" and "coupon."
Groupon, as part of ThePoint.com, has over 400,000 unique visitors per month, as reported by Compete.com They are in the top 5000 sites on the Internet. On July 1 2009, Groupon rolled out a new website design.
Business Model
The company offers one "Groupon" per day in each of the markets it serves. The Groupon works as an assurance contract using ThePoint's platform: if a certain number of people sign up for the offer, then the deal becomes available to all;[1] if the predetermined minimum is not met, no one gets the deal that day. This reduces risk for retailers, who can treat the coupons as quantity discounts as well as sales promotion tools. Groupon makes money by getting a cut of the deal from the retailers,[2] as well as through advertising revenue.
Competition
Groupon main competitor is BuyWithMe
Marketing
Groupon focuses on unusual, special or niche things in each market. Previous Groupons have included whale watching, personal trainers, teeth whitening, golf, cooking classes, sports and theatrical events, and a variety of bars and restaurants [3]. Each day's deal is accompanied by an irreverent, tongue-in-cheek description, similar in style to woot.com.
The Point
Groupon is built on ThePoint's collective action engine. Based on the concept of an assurance contract, the system works by a predetermined number of people joining a campaign or a threshold amount of money being pledged to it. Once that "tipping point" is reached, pledges (if any) are called in, and the action takes place. Groupon also works with the same model: a certain number of people need to sign up for the daily deal, or no one gets the deal. Founded by Andrew Mason, ThePoint debuted in the spring of 2007.
Funding
ThePoint and Groupon are partially funded by an investment from New Enterprise Associates, one of the largest technology investors in the United States. Eric Lefkofsky is also a lead investor.
See also
- Tuangou, or group buying in brick-and-mortar retail stores
References
External links
- NBC Washington, DC: Get Your Groupon
- RecessionWire: Recession Obsession: Groupon
- Glamour: Friday Fortune Cookie: A Killer Coupon Site
- CBS News: Retailers' Woes Prompt Creative Price Cuts
- Wall Street Journal's Smart Money: How To Score Group Discounts With Strangers
- Time: Q&A With Groupon Founder Andrew Mason
- The Washington Post: Critical-Mass Discounts Lure Savvy Shoppers
- {http://http://www.boston.com/business/articles/2009/06/14/shoppers_of_the_world_unite/]