Discussion Questions

1. What is Groupon and how does it work? What is Groupon’s market? What does this company do and how does it make money?
   1. What does Groupon do that makes businesses willing to pay for its services?
   2. Why is Groupon such a big deal? That is, why should consumers pay attention to what Groupon has to offer?
2. Using Porter’s Five Forces as a framework, describe the competitive environment of the collective buying industry, pre-Groupon and post-Groupon.
3. How should Groupon’s business model be classified?
   1. What are the core objectives for Groupon, and what are the critical activities and resources that support these objectives? (Outlined in COAR Map, Exhibit TN-3).
   2. How does Groupon’s core customer segment fit with the company’s business model?
4. What is the viability of Groupon? Will this business survive in the long run, or will it fade away?
   1. Is Groupon a pioneer? Does it have a first-mover advantage?
   2. What barriers to entry is Groupon trying to create? Are they working?
   3. What competitive advantages exist for Groupon’s potentially biggest threat (i.e., Google, which tried to buy out Groupon)?
   4. Groupon was started in November 2008. What are the long-term plans for maintaining and creating company growth?

How would an initial public offering (IPO) affect the company’s go-to-market strategy? Would an IPO alter the relationships Groupon has with local businesses in various cities?