TABLE OF CONTENTS
EXECUTIVE SUMMARY 3
ABOUT GROUPON 4
INDUSTRY DYNAMICS OF GROUPON 5
GROUPON’S INNOVATION 5
SOURCES OF GROUPON’S INNOVATION 5
THE LIFE CYCLE OF GROUPON 5
WHAT BUSINESS IS GROUPON IN? 6
GROUPON’S DOMINANT DESIGN 6
FORMULATING GROUPON’S INNOVATION STRATEGY 6
THE VALUES OF GROUPON 6
GROUPON’S TIMING OF ENTRY 6
GROUPON’S CORE COMPETENCIES 6
GROUPON’S CORE RIGIDITIES 6
IMPLEMENTING GROUPON’S INNOVATION STRATEGY 6
INDUSTRY DYNAMICS 6
GROUPON’S COLLABORATION STRATEGIES 6
PROTECTING GROUPON’S INNOVATION 6
GROUPON’S ORGANIZATIONAL STRUCTURE 6
This project provides an analysis and evaluation of Groupon’s strategies of innovation, highlighting their proactive approach in providing an interactive and synergetic online network with both their merchants and customers.
Utilizing the schema set forth in Strategic Management of Technological Innovation by Melissa Schilling and extensive information collected from various resources including the Groupon company website, news reports and personal experience of the author, the present study will outline the steps that led to the success of Groupon since its creation in 2008. There will also be a focus on the customer-oriented approach which enabled Groupon to become a valuable resource, and how the company as a whole plans to grow in order to gain access to and provide additional services to more consumer markets.
A key to Groupon’s success has been a result of a highly concentrated focus on meeting the requirements not only of its customers, but also of its corporate partners who are utilizing its marketplace to promote their businesses. Their users, both the businesses and customers, have played an extremely crucial role in Groupon becoming the market leader in the deal-a-day website industry. Groupon has been very effective in responding to the needs of its consumers (both the buyers and sellers) to give them exactly what they want and need to accomplish their objectives in doing business with the site. Through careful¬ planning and strategizing, Groupon has been able to take traditional couponing to a broader and innovative level – spreading promotions and deals right at the fingertips of its users. This report will highlight key strategies that have enhanced this ability.
Groupon is a revolutionary deal-a-day website for business owners and customers all over the world. Groupon has helped over 650,000 business reach over 44.9 million active customers of Groupon across the world, creating the world’s biggest online marketplace for promotional discounts. The company’s mission is to connect buyers and sellers through “price and discovery,” in hopes of making online discount purchasing a daily practice for its customers and merchant affiliates. Groupon connects sellers to patrons for promotional deals for restaurants, spas, fun outings and activities, entertainment events like concerts and...