Can Groupon Save Its Business Model?


Can Groupon Save Its Business Model?

If there is a conflict, whose needs should a b2b service offering address – those of the customer or of the customer’s customer? Groupon removed time-restricted discounting to attract more users – their customer’s customers. But, as a consequence, businesses whose main intention in offering discount is to generate an off-peak demand, aren’t getting much value by offering such unrestricted discounts.

Is this a flaw inherent in Groupon’s business?

I think, not. Groupon needs to identify its customer as its customers’ off-peak customers (and not all of their customers’ customers) and build an offering that generates value for them. Such value can be social in nature (such as sharing of product information) or economic ( such as gifting).

One thought on “Can Groupon Save Its Business Model?

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