A study on business_model

May 29th, 2015
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Aberystwyth University
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Who are Groupon´s customers? Groupon's customers can be divided into two categories: subscribers and merchants. By the end of 2010, Groupon had a total of 51 million subscribers in 565 cities worldwide . Subscribers are young (68% are from 18-34 and 18% from 35-44 year old) and primarily women (77%). They are well educated and mostly employed (75%). 71% have an income less than $100,000 a year (Refer Chart1) .

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Table of contents1.Who are Groupons customers?12.What do Groupons customers value?13.How does Groupon provide that value?24.What is Groupons profit formula?35.What is Groupon's business model?3Appendix4Groupon is a social commerce website launched in 2008 that provides a platform for buyers and sellers to converge. It provides highly discounted products or services to its subscribers using a "deal-of-the-day" coupon. This discounted coupon is valid only if a minimum number of subscribers purchase it, thus leading to a high sales volume to the merchants.1. Who are Groupons customers?Groupon's customers can be divided into two categories: subscribers and merchants. By the end of 2010, Groupon had a total of 51 million subscribers in 565 cities worldwide1. Subscribers are young (68% are from 18-34 and 18% from 35-44 year old) and primarily women (77%). They are well educated and mostly employed (75%). 71% have an income less than $100,000 a year (Refer Chart1) 2.On the other side Groupon pitches to merchants located locally by selling them the prospect of gaining immediate customers as well as guaranteeing promotion to thousands of potential customers3. These businesses are usually small-scale, and operate locally, selling a wide array of lifestyle products and services for example, entertainment, health, diet and fitness, accessories, travel, fashion, dining etc. As the biggest group 40% of the offered promotions are for (mostly expensive) restaurant

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