I just recently found out about Groupon and after reading the article, Groupon at $3 Billion Soars like Silicon Valley, From Chicago, I thought, "where have I been?" This business that will generate $500 million in sales this year distributes daily deals to 29 countries around the world and the business is growing dramatically. The article says that since May of this year the number of markets Groupon serves has doubled to over 300. In fact, Groupon has just recently become available to the Baton Rouge community.
For those of you who are like me and don't know much about Groupon, it's a business that offers steep discounts to members on products and services ranging from cupcakes to yoga classes, to dinner cruises, dental exams and the opera! There are other sites that are similar to Groupon, such as Bargain Bee and Living Social, but as the article says, Groupon differentiates itself by not only offering a deal, but by offering a deal from the best merchants that are the most relevant. It seems that Groupon's competitive advantage is that they offer more deals and tailor or customize the deals more effectively to their audience than their rival sites.
I love groupon! Have I ever bought anything from it? No. Do I think about the great deals? Yes. Groupon makes so much sense - people who would not normally go into your business or even know about your business get a great deal and check it out. Before you know it, the girl who went to your salon tells her friends and even more customers file in.
ReplyDeleteI love groupon, too! It's pure marketing genius. It's a win-win for everyone involved. Groupon is making so much money, the companies are driving business to their doors and the consumers are getting half priced deals! I buy "groupons" all the time...as you know ha ha
ReplyDelete-Stephanie Bissell
I also love Groupon, and think it a great company. However, I very rarely make purchases because while groupon makes offers based on the city you live in, it is rare that the offers are from companies that are on the side of town I typically travel.
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