1. Threats on
business model
GIE – 6083 Conception d’entreprises de la nouvelle économie
Jean-François Rougès et Benoit Montreuil

2. Groupon concept:
Groupon negotiates huge
discounts—usually 50-90% off—
with popular businesses.
If a certain number of people
sign up for the offer, then the
deal becomes available to all.
Groupon makes money by
keeping approximately half
the money the customer
pays for the coupon.
Source : Wikipedia
GIE – 6083 Conception d’entreprises de la nouvelle économie
Jean-François Rougès et Benoit Montreuil

3. Groupon has a multi-sided platform (or switchboard) model:
Stake- Stake-
holders holders
Offer Businesses
Clients
• One local deal per every day
Stake- • Huge discount on products and services of successful
holders
Offer local businesses
Clients Exchange • Information on available offers by mail
• Opportunity to recommend the deal to one’s friends
Stake-
holders • Sales promotion tools
Offer • New customers attraction tools
Businesses
Exchange • Advertisement support: viral effect
GIE – 6083 Conception d’entreprises de la nouvelle économie
Jean-François Rougès et Benoit Montreuil

4. Ideal win / win situation
Creation
Bundling:
- internet site
- online payment
- coordination with
the concerned
business
Contribution:
50% of payment to Groupon,
Stake- 50% to the business
holders Offer
Internaut
Gain: discount in a
local popular business
Strategic opportunity:
Partner tool for growth
Bundling:
- delivery of promised
Businesses
products or services
Character
Creation
GIE – 6083 Conception d’entreprises de la nouvelle économie
Jean-François Rougès et Benoit Montreuil

5. Actual win / loss situation
Threats on Groupon’s
business model
2 Creation
Bundling:
Feedback: works well
Lots of clients as regards
are dissatisfied Groupon’s
part
Contribution:
Stake-
50% of payment to Groupon,
50% to the business
3
holders Offer Frequent strategic
Internaut desappointment:
Non profitable
1 sales
+ Low customers
Defense:
Bundling: Abandon of
Feedback:
Lots of clients are often businesses Partner retention
= Non profitable
Groupon’s
services
are overwhelmed
dissatisfied:
negative impact by the volume of Businesses in a long term
perspective
on the demand and can not
reputations of assume the delivery
of products or services Character
the business and
of Groupon with usual quality Creation
standard
GIE – 6083 Conception d’entreprises de la nouvelle économie
Jean-François Rougès et Benoit Montreuil

6. Impacts
1. Dramatic drop in number of visitors in the US.
Source: http://siteanalytics.compete.com/groupon.com/
09/2010 07/2011 12/2011 09/2012
2. Groupon’s stock has been
falling for one year.
GIE – 6083 Conception d’entreprises de la nouvelle économie
Jean-François Rougès et Benoit Montreuil