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4 pages/β‰ˆ1100 words
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APA
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Management
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Case Study
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English (U.S.)
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Topic:

The Case of Groupon Inc.: Daily Deal or Lasting Success

Case Study Instructions:

The case study: “Groupon Inc.: Daily Deal or Lasting Success?” Case 11, starting on page 11-1, will include a synopsis and three findings of fact. Each finding of fact will require a justified solution, each a minimum of one page each. Support your recommended solutions with rational thought learned from the course material, other courses, and real-life experiences. Late submission will result in the paper's grade being reduced by 10 points. The paper will be double-spaced and will not exceed 10 pages in length. Place the assignment in the D2L Dropbox. Case study preparation requirements: Synopsis Each case study paper/presentation will contain a synopsis. A synopsis is a brief overview of the case. A written case study synopsis should not exceed 2-3 paragraphs. Findings of Fact Findings of fact are strategic issues discussed in the case studies and usually identify potential problem areas for the firm. Additionally, these strategic issues are facing the firm's strategic managers at the end of the case's time frame. Strategic problem statements. Each case study paper/presentation will identify three findings of fact. Usually the findings of fact are one to two sentences each in length. Recommendations/Justifications Recommendations are directly tied to the findings of fact. For each finding of fact, a thorough, justified, recommendation must be provided. How are you going to rectify the strategic problems that you have identified and why. Additionally, this section should also include an implementation discussion. General statements and blanket conceptual recommendations that are not fully justified with the facts of the case, are not acceptable. The recommendations/justifications section of the paper should be one-two pages each in length. Length and Format The length for each written case study will not exceed ten pages. Any information in excess of the ten-page limit will not be evaluated. There is no specific format for the case studies presentations---be creative! Research You must remain within the confines of the case study data. You cannot research the firms we analyze and re-import this data into your submissions. The reason for this is that a case study is a snapshot of the firm and you are analyzing the firm within this time frame; therefore, researching the firm's current strategic position may cause you to recommend strategic actions that may not be supported by the case data.

Case Study Sample Content Preview:

Case study with 3 finding of fact
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Case study with 3 finding of fact
Mason Andrew created Groupon in 2006. The company was headquartered in Chicago, and it was set to change the manner in which customers shop, spend and think about discount. The business model used was based on what Andrew had created the first company called “the Point.â€Β The concept was called “Tipping Pointâ€Β which was a web platform that advertised ideas and allowed people to reach a critical number then enable them to take a collective action. On reaching the required number, the company would use social media to help the subscribers make an organized action. The company gives customers a buying power while the merchants get exposure to large scale demand. The process starts with Groupon recruiting merchants to offer discounts and then publicizes then discounts on a subscribed group. Once the group accepts the offer and reaches the required number, the deal is initiated.
In October 2008, Groupon launched the first deal, and this became one of its core competency. The company grew very fast and in the first six months it expanded to other cities like New York and Boston. 16 months from its creation, the company was worth $ 1billion. The expansion continued to spread to Asian and European markets until it reached 35 million subscribers. Eventually, the company went public in November 2011 and raised $700 in the Initial Public Offer.
However, ten months after the IPO the company’s stock fell by almost 84% due to intense competition from rivals who replicated the model. Some companies such as Bloomspot and GiltCity emulated the model and took a portion of the market. Additionally, SEC scrutinized the company’s financial reporting and forced them to reduce on their revenue reporting. The company has continued to experience problems such as increasing costs. The facts below show what the management can do to make it profitable again.
Fact Finding 1: Merchants were not amused with the model due to the massive discounts and low repeat rates from the customers.
The success of Groupon depends on bringing merchants and clients together. Both the two parties should be satisfied with the deals. The company takes 50% from the deal, and the dealers feel they lose because the sales are heavily discounted. The situation threatens to cause exit for some and further deteriorate the performance of the company. It is important that Groupon retains the merchants and strives to keep all the partners happy. The following actions can help to make the dealers happy.
* Groupon should offer discounts for the loyal clients by collecting at most 30% instead of the usual 50%. The strategy will motivate customers to return for the deals and solve the problem of low repeat rates. Also, the company can provide a one-time discount for every new merchant joining the company. The strategy will reduce the pressure that merchants experience due to the substantial cuts. The number of merchants anticipating to accede to the company t...
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