Case Study on Groupon

Groupon Case Study:

Groupon is the commercial website which offers deal-of-the-day discounts or coupons for various goods and services of the companies which place their offers in its database. Groupon was founded in 2008 and the website became extremely popular at once, because it enables people have a drink at a restaurant, go climbing, try yoga or dancing courses and try horse riding for the serious discount from 50 to 90%. The model of Groupon’s business is very easy. One should log in the system of the website and create an account there. With the help of the donated money and the account one can take advantage of the discounts or coupons on various services that very day. Every day there is a list of the offers which are suggested for customers and every offer has the minimum of the buys which should be achieved to activate this service.

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The website earns money in quite a natural way: if the service costs 100$, the company offers to reduce the price to 50$ on Groupon and a customer can purchase it for this sum. Groupon takes half of the price of the sold service, that is 25$, the other 25$ receives the company or the owner of the service. In spite of the fact that the company loses 75$ of the cost of the service, the number of people who would use these service will be so high, that it would be only for the plus. The coupons offered by Groupon play the role of advertisement and attract customers to the company. Evidently, if the clients enjoy the service, they will probably return and pay for it later again and again.

Groupon is a good means of advertisement for every company, but there are certain disadvantages which are based on the enormous number of clients which can come within one day. Small companies simply can not serve for too many people at once and very often customers are dissatisfied with the quality of the service and demand their money back. Writing a Groupon case study one should learn as much as possible about the service of the website to be able to analyse its work professionally. One should explain the principle of work of the system and analyzes its advantages and disadvantages. In order to find the cause of the problem and its consequences one should research the case site and collect enough data for the analysis.

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