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- Herausgeber: 50Minutes.com
- Kategorie: Fachliteratur
- Serie: Business Stories
- Sprache: Englisch
Find out how Groupon exploded around the world in just 50 minutes!
The online deal marketplace Groupon was founded in 2008 in response to ordinary citizens’ declining buying power during the global economic crisis. Its initial success was astounding: its early growth outstripped that of Google, Amazon and eBay, and its value reached $1 billion just 17 months after its creation. However, cracks soon began to show as partners complained of being forced into loss-marking contracts and investors deserted the company in droves, causing its share value to plummet. In response, Groupon has taken steps to reinvent itself through its new marketplace and direct purchasing options, leaving many onlookers uncertain but cautiously optimistic about the site’s future.
In 50 minutes you will:
• Find out about Groupon’s business model and astonishing early successes
• Understand the reasons for Groupon’s decline and the steps taken to remedy it
• Identify Groupon’s competitors and the challenges facing the company in future
ABOUT 50MINUTES.COM | BUSINESS STORIES
The Business Stories series from the 50Minutes collection provides the tools to quickly understand the innovative companies that have shaped the modern business world. Our publications will give you contextual information, an analysis of business strategies and an introduction to future trends and opportunities in a clear and easily digestible format, making them the ideal starting point for readers looking to understand what makes these companies stand out.
Das E-Book können Sie in Legimi-Apps oder einer beliebigen App lesen, die das folgende Format unterstützen:
Seitenzahl: 28
Veröffentlichungsjahr: 2017
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Groupon: the online voucher giant
Discounts driven by the internet, trends and social networks
Groupon.com first appeared in 2008, a difficult year for the crisis-hit American economy. The young entrepreneur Andrew Mason noticed that Americans were extremely worried by the decline in their buying power and decided to bring back discount coupons. The site attracts a large number of shoppers by offering huge promotions every day, which are only valid if a minimum number of users sign up for them. This system seems as old as time, but clearly taps into current trends: group buying relies on a network and takes place online; paper coupons become digital; and massive discounts allow customers to treat themselves even during an economic crisis and businesses to attract people back to their shops.
The site’s success was astounding: its value reached $1 billion just 17 months after its creation, which is virtually unheard of for startups. After two years, the coupon giant was present in 88 US cities and 22 countries around the world. In late 2010, Mason turned down an offer from Google to purchase the site for $6 billion. When the company went public a year later, it ended its first day with a market value of $16.5 billion.
However, it was not long before cracks began to show: unhappy partners questioned the model’s stability, competition increased and huge losses drove away investors. Since 2012, Groupon has fallen off its pedestal, and although the company is reinventing itself, it seems incapable of restoring confidence in its economic model. With the buzz surrounding group buying now a thing of the past, does the coupon giant have a future?
Key information
Founders: Andrew Mason (American musician, born in 1980), Eric Lefkofsky (American entrepreneur, born in 1969) and Brad Keywell (American entrepreneur, born in 1969).Founded: 15 January 2008 in Delaware, initially under the name ThePoint.com. It officially became Groupon, Inc. on 16 June 2009.Market launch: November 2008 in Chicago.Sector: online sales.Key figures:2009: net revenue of $30 million.2010: net revenue of $713 million.2011: net revenue of $4 billion and 33 million active users worldwide.2012: net revenue of $5.4 billion and 41 million active users worldwide.2013: net revenue of $5.8 billion and 44.9 million active users worldwide.2014: net revenue of $3.2 billion and 53.9 million active users worldwide.2015: net revenue of $1.47 billion and 48.6 million active users (compared with 260 million subscribers) worldwide as of end of September 2015. Key terms:Group buying: the idea is to get several buyers together in order to increase the sales volume and negotiate a better price with the seller. Traditionally practiced by buying professionals or company committees, this buying method has become widespread in the digital era now that buyers from across the world can join forces.Web 2.0: this expression was coined in 2007 to refer to the evolution of the internet towards greater interactivity with the emergence of social networks, blogs and crowdsourcing, the most notable example of which is the creation of the collaborative encyclopaedia Wikipedia in 2001.
