October 9, 2015
Question 1: How does Groupon take advantage of social networking and location technology?
Social Technology
- Track record - selling goods and services on the INTERNET is increasingly based on social networking – friends recommending friends.
- Companies targeting individual and their friends who are members of social networking communities such as Facebook and Twitter. Advertise their products and services through Google.
- Personal Follow up – can follow-up with newsletters, special offer and news releases t the company
- Best foot forward strategy – An opportunity to demonstrate stellar customer service. Can win repeat customer this way.
Location Technology
- As Groupon armed with detailed knowledge of customers locations target special offer of location-based goods and services.
- Information for the selling of goods or discount of coupons can be access by customer at any time and any ware using mobile apps.
- The business earns revenue by asking people to recruit their friends and acquaintances to sign up for discount coupons to create a “critical mass” of potential customers for a local product or services.
Question 2: Do you think the business model is viable? Why or why not?
In my opinion the business model is viable based on the following:
- Inexpensive deal.
- Ability to get more profit.
- Currently social connectivity is proven as a platform to selling goods and services on the internet.
- Groupon serves 500 markets in 44 countries.
- Groupon also need to strategize the marketing and business in order to maintain their profits.
- Groupon also need to maintain and increase competitive advantage for their products and service.