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Groupon

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Submitted By marisab18
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Groupon is a global leader of local commerce. The company offers its consumers thousands of discounted deals tailored to their individual needs. Groupon offers discounts on products ranging from electronics, food, miscellaneous services, luxury items, to even exquisite “Groupon Getaway” vacations. The organization has successfully dominated the market at capturing 53% market share with its well-known rival, Living Social trailing behind at an estimated 22% market share. Both companies have found strategic criteria that work well for them. One key strategic criteria that Groupon has been using is to adjust their model and offerings to meet the market and consumer demand. According to an article published by NASDAQ, “Groupon has been building up its website to offer a far greater range of products and services, national and local.”1 By using the adjustment as part of their strategic criteria, Groupon has been able to remain at number one in the industry. Groupon has also use promotion and promotional offerings as a strategic criteria. An example of this would be the offering to the consumer of “one day only” deals. For example, the organization is currently offering (as of May 21, 2014) an extra 10% fitness wear or fitness classes purchased by the consumer with a special offer code applied at the end of purchase. They also have their referral promotion of giving the consumer ten Groupon dollars if they refer a friend and the friend makes a purchase. A third strategic criteria that the organization uses is technology. Groupon has recently entered the mobile tablet industry with a tablet based platform they are releasing called “Gnome.” In an article published by Forbes, “Gnome will enable Groupon merchants to better manage their transactions, keep track of customers to launch specific marketing campaigns and simplify the whole process of Groupon redemption.” 2 By

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