International Journal of Scientific & Technology Research

IJSTR@Facebook IJSTR@Twitter IJSTR@Linkedin
Home About Us Scope Editorial Board Blog/Latest News Contact Us

IJSTR >> Volume 4 - Issue 1, January 2015 Edition

International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616

An Appraisal Of Groupon E-Business Model

[Full Text]



Odeniyi, O. Ayodeji, Lawal, N. Tunde, Kareem, A. E. Adebowale



Index Terms: Business Model, E-business, E-Commerce, Merchants, Online Technologies, Social Media Technology, Firms, Marketing.



Abstract: A new kind of business, ‘digital age middleman’, which ordinarily may not have been possible, has emerged. An instance is Groupon, an e-commerce platform which allows a small group of merchants to reach a large number of customers using internet and social media technologies to provide discounted deals. Therefore, the purpose of this study is to appraise the Groupon e-business model. Firstly, the brief profile and business model was examined. Thereafter, an in-depth Social, Legal, Economic, Political, Technological, Ecological/Environmental and Competitive (SLEPTEC) analysis of the business model was carried out. Then, the elements of the business model and the resulting growth and advantages that bring about competitive and profits in the modern markets for Groupon were evaluated. The findings shows that simple technologies of email and social media can be leveraged for business success especially in massive subscribers' base as currently witnessed by Groupon. The study revealed the associated problems with the Groupon e-business platform, and thus conclusively recommends how the business model can be improved via considerations of other technological factors.



[1] Arabshahi, A., 2010. Undressing Groupon: An Analysis of the Groupon Business Model,
http://www2.dse.unibo.it/mantovan/Undressing-Groupon.pdf. 2013.

[2] Axon, S., 2010. Groupon Adds Self-Serve Deal Platform, Says It's the "Future"’,Mashable

[3] Bjorkdahl, J., 2009. Technology cross fertilisationand the business model: The case of integarating ICTs in mechnaical engineering products. Research Policy, Volume 38, pp. 1468-1477.

[4] Boston, G., 2009. Site leverages power of group purchases’ The Washington Times.
http://www.washingtontimes.com/news/2009/jul/08/site-leverages-power-of-group-purchases/. 2013.

[5] Buchler, D., Downey, J. M., Goldstein, A., Kheyfets, A. and Monitz, L., 2011. Groupon: What a deal,
http://www.laurenmonitz.com/images/Groupon_final.pdf. 2013

[6] Chaffey, D., 2011. E-business and E-commerce Management: Strategy Implementation and Management. 5th ed. Essex: Pearson Education Limited.

[7] Chicagoist, 2010. Groupon Launches "Groupon Goods" Chicagoist,
http://chicagoist.com/2011/09/30/groupon_launches_groupon_goods.php. 2013.

[8] Clemons, E. K., 2009. Business model for monetising internet business applications and websites: experience, theory and predictions’, Journal Management Information System, Vol.2 pp.15-41.

[9] Dahlen, C., 2012. Observations on Groupon’s business model - a primer’, Slide share,
http://www.slideshare.net/dahlenc/groupon-business-model. 2013.

[10] Etherington, D., 2013. Groupon Redesigns Web and Mobile Apps to Focus on Personalization, Local and Search’ Techcrunch (TC), http://techcrunch.com/2013/11/01/groupon-mobile-web-redesign/. 2013.

[11] Fiergerman, S., 2013. Groupon Acquires Blink App to Expand Last-Minute Travel Offerings’, http://mashable.com/2013/09/09/groupon-acquires-blink-booking/. 2013.

[12] Groupon Inc., 2013c. About Groupon: Our Mission, http://www.groupon.com/press/about-groupon. 2013.

[13] Groupon Inc., 2012a. Groupon.co.uk http://www.groupon.co.uk/

[14] Groupon Inc., 2012b. Groupon.co.th, http://www.mygroupon.co.th. 2013.

[15] Groupon Inc., 2012c. Group.co.uk, http://www.groupon.co.uk/payment. 2013.

[16] Groupon Inc., 2013a. Groupon Acquires Local Experience Startup Side Tour’ Groupon Press Release, http://investor.groupon.com/releasedetail.cfm?ReleaseID=791322.

[17] Groupon Inc., 2013b. Public Fact Summary Q3,
http://files.shareholder.com/downloads/AMDA-E2NTR/2862350788x0x710981/E9EEB68D-05DB-4C99-9BF4-0D04B326C698/2013_Q3_Public_Fact_Sheet.pdf. 2013.

[18] Jaswal, A., 2012. Strategic Analysis – Groupon, Slide share,
http://www.slideshare.net/anuragme1/groupon-the-road-head?utm_source=slideshow02&utm_medium=ssemail&utm_campaign=share_slideshow. 2013.

[19] Mashable. 2013. Groupon http://mashable.com/category/groupon/. 2013.

[20] Online Maximizer, 2013. How Groupon conquered India Markets with Onions, Slide Share
http://www.slideshare.net/maximizer?utm_campaign=profiletracking&utm_medium=sssite&utm_source=ssslideview. 2013.

[21] Professional Academy (n.d). Marketing theories – PESTEL analysis, http://www.professionalacademy.com/news/marketing-theories-pestel-analysis. 2013.

[22] Trefis Team, 2013. Groupon Aspires to Become ‘OS for Local Business’ With Breadcrumb Enhancements, Trefis, http://www.trefis.com/stock/grpn/articles/169977/groupon-aspires-to-become-os-of-local-business-with-breadcrumb-add-ons/2013-02-21. 2013.

[23] Business Wire, (2013). Groupon announces Rewards Program to Drive Repeat Visits to Local Businesses, Business Wire, http://www.businesswire.com/news/home/20110928005375/en/Groupon-Announces-Rewards-Program-Drive-Repeat-Visits#.UrwTFfRdWJI. 2013.

[24] Yahoo Finance. 2013a. http://finance.yahoo.com/q/pr?s=GRPN.2013.

[25] Yahoo Finance, 2013b. GrouponInc: Direct competitor, http://finance.yahoo.com/q/co?s=GRPN+Competitors, 2013.