Groupon Essay

Groupon gets commissions from the product and service providers. The providers are able to promote their products and gain benefits from the extensive quantity of orders. It is a model that can satisfy all the hoi polloi the customers, product sellers and the Groupon guild. However, this championship model is easy to imitate. It does not required blue technology or unique skills to set up the business. Many internet companies, such as Google and Amazon, acquit stepped in this market. They have established quasi(prenominal) business services.Those competitors are attempting to grab market share from the leader, Groupon. For example, Google has set up its own online group buying websites, Google offer, and released more(prenominal)(prenominal) than attractive offers by baleful the price than the similar products or services on Groupon. Therefore, customers have more choices of online group buying providers. Customers are able to find better products from Groupons competitor s. With intensive competition, Groupon needs to consider how to maintain its market share and how to cleanse its services to attract more return customers in the short run.In the long run, the company needs to think ab come on how to improve the business model to make it more competitive. Alternatives Groupon could start a customer inscription program to cultivate a high loyalty customer group. The company could build an award system for the program. The customers could earn certain points when they purchase the products. If they have achieved enough points, they could redeem those points to purchase new deals. The customers would spend more victimisation this incentive because the customers could get more benefit if they shop more.The company could throw out its customer to keep shopping on its website and maintain the market share. only when the reward system is easy to copy. Finally, the company has to choose whether to give more rewards than its competitors. Groupon could lo se profits by giving away more benefits to the customers. Groupon could check its service by sending customized offers. The company could require its customers to fill out preference information when they sign up for the website. The customers could get the customized deals regularly by emails.This strategy could periodically provide the customers with implicationed services and products that they are interested in. provided the process for the private information may make the customers uncomfortable with it. jut out of action The company should choose the second alternative. By collecting the personal information, the company is able to analysis its customers needs in a more precise way. The company can build huge customer selective information base to find right products for the customers. The company could give special discount if the customer s can submit their preference information.