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IS 482

IS 482. Yazeed Alabdulkarim yalabdulkarim@ksu.edu.sa http://fac.ksu.edu.sa/yalabdulkarim. Case Study: Groupon. Founded in 2008. Offer subscribers daily deals. A group of people, usually 25, have to buy the coupon to be valid. What do you do if you want that discount to be vaild ?

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IS 482

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  1. IS 482 YazeedAlabdulkarim yalabdulkarim@ksu.edu.sa http://fac.ksu.edu.sa/yalabdulkarim

  2. Case Study: Groupon • Founded in 2008. • Offer subscribers daily deals. • A group of people, usually 25, have to buy the coupon to be valid. • What do you do if you want that discount to be vaild? • What is the revenue model ? • Who does win here? • What is the merchant hopping for? • Customer acquisition cost.

  3. Case Study: Groupon • In less than 3 years, more than 83 million customers, operates in 43 countries. • Generated $688 million in the first half of 2011. • Fastest growing company in the history. • Yahoo offered $3-$4 billion to buy and was turned down. • Google offered 6.5 billion and was turned down. • Wall street expected the value of the company at $30 billion.

  4. Case Study: Groupon • It struggled to show profit: • In 2010, lost $450 million on $313 million in revenue. • Its expenses were $733 million. • The biggest expense is customer acquisition. • $284 million was spent on advertising, email and salesperson. • How social networks helped to succeed. • Is Groupon business model sustainable? • Competitors: Google Offers, Loopt.

  5. Thanks Any Question ?

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