Groupon Case Solution & Answer

Groupon  Case Solution

Along with this, the company should focus on supplement strategies, which include; offensive (focuses on improving the market share), and defensive (helps to retain the market share).

1.      Offensive strategy:

This strategy focuses on the location, which is already occupied or less occupied, in other words it focuses on the business to expand globally. (Investopeda, 2016). It can be accomplished through four phases, which are; (1) by looking at the competitors and their location (2) focusing on the consumers as to what they actually need in the local market as well as in the new location (3) making strong relationships with the merchants in the local location and focusing on expanding the business (4) and trying to continue to expand in various cities and monitoring the performance.

2.      Defensive strategy:

It includes the improvement in the service by improving the merchant relationship as it is the best tool to promote the company’s products and services which will improve the brand name.(Yannopoulos, 2011). It includes (1) to survey the merchant market that would help to analyze the company (2) make changes as suggested by the merchants (3) monitor and evaluate the performance by asking them regarding the change in the company (4) continue to adjust the change and improve the relationship with merchants.

Along with this, the defensive strategy can be used to improve the quality of services that would change the current business model and replace it with an improved model that would help to increase the market share of the company. It can vary in terms of (1) to make proper customer survey and consult the merchants about the company’s coupon offers and its popular items that are more demanded by the customers. (2) Make changes in the price of the coupon offerings, and promote those products and services that are highly demanded by customers and not to waste money on the promotion of less popular products. (3) Continue implementing changes in all local markets (4) and lastly, continuously monitoring the result and performance as well as making the changes whenever and wherever required.

Final Overview:

Groupon is in a moderately new market that has a limited history to have the capacity to anticipate whether development can proceed or be maintained. Groupon’s success depends on the enthusiasm of merchant partners and its subscribers. Along with this, for long term goals, Groupon should be flexible to adapt as well as adjust its plan of action to fit the necessities of merchants and clients simultaneously.


Therefore, it is recommended that the company should build the database of customer preferences and their demands as well as it should form the strategy in such a way that it cannot be replicated easily. The company should segment the merchants by attaining the diverse and loyal merchant base. Along with this, the company should create a brand loyalty, which would be done by satisfying the customers’ demand, and once this is achieved, the sales of the company would eventually increase…………….

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