Groupon Essay

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Groupon is an American ecommerce company that was derived from another business known as Point. Point was a web based company developed to help people fight for a cause or goal. Andrew Mason the founder of Point, was determined to make this platform success. The company was established in Chicago were it was not able to take off as Andrew expected (www.groupon.com). After a moderate spark to the company, the group decided their cause would be to save money. Their plan was to purchase the same product but at a discounted rate. After establishing a partner by the name of Eric Lefkofsky, Lefkofsky wanted to focus more on group discounting and that is how they came up with the name Groupon (www.groupon.com). Groupon’s first customer was Motel Bar, a company that was located inside the same building as Groupon’s office. Motel Bar offered two pizza’s for the price of one as their special discount on Groupon. Business started to grow, within one year and the company started hiring more employees, as the company grew at a rapid pace (www.groupon.com). Groupon were able to convince more businesses to sign up on their site, after sixteen …show more content…

With the demands of keeping up with competitors and customers these conditions will help them to stay on top of the economy. Even though ABC cost system is a managerial cost tool, e-commerce companies can use EAD (expense activity dependence) and APD (activity product dependence) matrix. These are two tools associated with ABC costing will allow Groupon to use the data provided from the company to trace overhead expenses such as: web design and maintenance, order processing, product marketing, telephone support, product handling and product shipping. The main activities identified to trace Groupon’s overhead will be determined by the level of accuracy and reliability

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