Groupon Case Study Summary

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The first strategic recommendation I have is to lower the percentage cut for Groupon. This strategic alternative would benefit their weakness with businesses relationships. From my mother’s experience of working with Groupon, from a business perspective, one reason they stopped using it was because they did not receive a profit from it. Advantages with this alternative is increased business, more business support, build more of a relationship and have business loyalty. Disadvantages to this alternative include decreased profits for Groupon.

The second strategic alternative I would recommend is to increase and train their customer service and representatives. I think Groupon started out with a skilled sales force when they were only in Chicago and a few other cities. As they have grown, they have had to hire a lot of people that aren’t very skilled or prepared. Once again, from my mother’s experience, the other reason why they did not continue to do business with Groupon is because the representative sold way more coupons than she told her to. By increasing and training their customer service …show more content…
I would recommend that Groupon takes a lower percentage cut from their merchants. I think this solution is optimal because they are run by the business that provide the goods and services to them. If they are not happy then Groupon will not be successful. By taking 40 to 50 percent of the revenue of each deal, the merchants are not making much, if anything. Even research reports said that this was unsustainable. If they do not reduce their percentage cut then competitors can move in and take their merchants by giving them more back. This strategic alternative makes the most sense compared to the others because it provides the most advantages. They will build a better relationship with the business, sell more of a variety of goods and services and continue to maintain the most market
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