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The following article was published in our article directory on March 11, 2011.
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Groupon business model success four elements

Article Category: Business

Author Name: xia zihui

Groupon business model success four elements

Guide language: standing Groupon only in more than two years of time accumulated 60 million registered users, attracting beyond billion dollars of risk investment, annual revenue reached $760m history, become the fastest growing Internet companies. The New York times recently is special writer analyses the current appear scramble to imitate Groupon industry business model phenomenon, and lists the successful required of a few elements.

The following is the full text:

Many emerging Internet companies are beginning to imitate standing Groupon business model for the vast number of consumers with everyday life need to buy cotton fabrics, barbecue equipments and other supplies. Groupon rival now are labeled as an idolater, blind travellers, imitators the name, but it does not quarrel with them. standing Groupon only in more than two years of time accumulated 60 million registered users, attracting beyond billion dollars of risk investment, annual revenue reached $760m history, become the fastest growing Internet companies. Last December, Groupon also rejected Google 60 billion takeover bid.

Therefore Groupon this extremely new gravity business models rapidly imitating: first find a local businessman as a business partner and then by E-mail to send the businessman of preferential product or service, and finally to the topline of the half on own pockets.

Groupon's biggest rivals in the amazon LivingSocial has reached a 1.75 billion investment transactions, not only such, like Facebook, Travelzoo, OpenTable Yelp, such significant site, even Google began to some of the functional characteristics Groupon into their websites. These copy objects while in the website form made it, but it didn't attract large user groups, but their idea is growing fast, undertake smaller risk in the premise of may also make a fortune.

That so? And what do not need to pay attention to some strategies:

Develop your own group

If you are a member of a special group, then you are likely to become Groupon imitator search target. For example you are African americans, there are Black Biz Hookup community; If you have a small business, there are GroupPrice site help you for sale.

Last November, 37-year-old about Ed Samuel yunus (Jodi Samuels) and 43, Alan Ganz (Allen's sport in Ganz) in New York founded a Jew standing Jdeal. This website provides cheap recently doughnuts and a Jew of the choir half-price tickets.

About Ed Samuel, and Allen ganz build website only so can in Groupon under the nose of rapid growth is because they know who they are exclusive groups. Samuel was in 2000 helped establish non-profit organization, the organization Jewish International Connection specializes in helping immigrated to New York from overseas countries with the young and professional of jews. 2009, two people and established the specially designed for the jews mother makes the social networking websites.

Samuel, said: "we realize that we immediately have great attention, because we have attracted a young and provide professional jews and jews mother, they will be website daily transactions of the two big main consumers. Jdeal currently registered users more than 8,000 people, they merchants with income into thereon.

According to about Ed Samuel, and Allen ganz introduction, their website thrum 11 months income over 10 million us dollars in the first year and is expected to total revenue in 50 million dollars. They also hope that through in the United States, Canada's seven cities to expand business scale.

Notice localization development

Groupon currently in global 42 countries 500 market set up his own business sites, so how can you compete with him? For most person do poineering work, strengthening local market, and establish strong relationships is the way to win.

Wendy, Wendy JieFei (Jaffe) and Rob van JieFei (ullage Jaffe) sibling both in April last year in southern California Conejo Valley established Conejo future website.

Rob van JieFei said: "when you receive Groupon and LivingSocial E-mail when you can call out, it's really a pile but the buying and selling of, but I could not drive 30 or 50 miles to buy, so we thought about creating future website." Conejo As American young league baseball a coach, and using his team go audition opportunity to create your user groups, and to each registered local schools donated 100 dollars, parents will not get any registered income.

Wendy ?� JieFei thinks, with local site Conejo future up, traders will capture more like in buying local product of users. She said: "if people use large standing Groupon, most of them are just once trading won't have second, because they because pay the price and drove 30 miles". She also says even Groupon into Conejo Valley she wouldn't concern because Conejo future just for local founded, and Groupon will in Chicago. Conejo future present year revenue in 70 million us dollars, JieFei sibling with local merchant decided into.

Mining special products demand

Groupon cater to consumer mass products, which means that they probably will ignore some special product requirements. For instance you will be hard pressed to find a dog in Groupon with allergy shampoo, so the other competitors might out a similar special products.

Jie cox (Adam Jacox) and Jason kass wave sen Casperson) created (Jason PetSimply web site is specially provided dog use allergy shampoo, this shampoo original price $20, has now been slashed 10 dollars. PetSimply also on February 24, completed the website first transaction.

Jie cox and Jason kass wave sen said they had with more than 20 home local retailers made contact for more nutrition, toys, they provide preferential with retailers, PetSimply now average into drew 10,000 users.

Develop the secondary market

Groupon imitate also can pass the second-hand market for profit, until July last year is through online website Lifesta resell second-hand products, and collecting 99 cents poundage and product sales price of the 8% to profitability.

In the secondary market is the most famous a website, they Yipit by collecting 360 websites even apartments-and information for seeking cheap products of 15 million users to provide one-stop shopping service, its website CEO pooh hughes ?� watts candy (Vacanti), said Vinicius Yipit weekly will also add 20 more website address links.

Last summer Yipit through a risk investment and financing 1.3 million us dollars, although they are still not profit, but Yipit already through the sales data reports, collection of industry recommended fees such measures as to achieve profitability. For example, Groupon will bring Yipit link for the sales income to the latter rebate 2% of cost, other smaller standing rebate up to 40%.

Pooh hughes ?� watts candy says the site has the pertinent service is their advantage. And yahoo, Microsoft is different, this is what they can focus on and have done. For example, users can Yipit specified type trading provide pertinent service, these are not able to provide Microsoft and yahoo.

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