TM583 – Course Project
By Jesse Marcano
Table of Contents
Introduction 2 Section 1 - Strategy 3 Section 2 – Core Competencies 6 Section 3 – Industry Dynamics 10 Section 4 – Technology Sourcing and Internal Innovation 13 Section 5 – Product Development Strategy 16 Section 6 – Strategy to Protect Innovations 17 Conclusion 20 Bibliography 20
Groupon did not invent the daily deal website; however, they introduced the concept of using the group buying power of online shoppers to receive substantial discounts from local merchants. Their model has been easy to replicate, which has lead to many clones operating in the same market as …show more content…
Consolidation is another of Andrew Mason’s strategies. In May of 2010, Mason purchased Citydeal, a Berlin based organization. CityDeal is another group-buying site that employs six hundred people and serves eighty cities in Europe. Mason wants to purchase more organizations abroad but explains that it is not so easy to be an outsider and figure out the local habits of consumers in those nations. Groupon has the ability to expand in many markets and turn a profit. Mason says that a yield of 20 deals per day in a metropolitan area like Chicago implies about 5,000 retailers per year, per city. One Hundred deals per day are now posted by Groupon in the U.S. and Mason thinks that that number can be increased by about fifty percent each month increasing to four hundred by the time January of 2011 comes.
Section 2 – Core Competencies
In their 1990 article