Groupon and Living Social are websites that assist in driving consumer interaction by advertising deals to potential consumers via their website and app (Gil, 2018). Groupon has about 70 million subscribers which is a huge platform for a company to get spread reach more customers without having to use multiple commutation outlets (Brown, 2011). Groupon works by taking a 50% commission on the product or service that customer choses to post on their site (Gil, 2018). Historically, consumers have used the internet as a vehicle to do research on products and services but then they go to the store and make the purchases from there (Tuten & Solomon, 2013). Groupon would fall into the social shopping category in that consumers can interact with others …show more content…
Starbucks partnered with Groupon in 2013 to being offering a deal where a customer could get a $10 gift card for $5 (Carr, 2013). With the initial launching of the deal Starbucks was able to drive $10 million dollars in revenue via Groupon and the traffic to Groupon’s website crashed their servers. (Carr, 2013). Using Groupon proved to be a financial success for Starbucks and helping the company to see massive year over year returns on their sales. It helped to drive a 38% return to Starbucks shareholders as well as a growth spurt in revenue of about 14% in comparison to the year prior (Carr, 2013). There are risks that are associated with a business choosing to utilize the Groupon advertising platform that need to be taken into consideration when using the advertising platform. The amount that the user initially paid for the Groupon never expires although the promotional value expires after 120 days of the initial purchase (Wolfe, 2017). Using Groupon does possess a huge risk associated with cost in that you will take a huge hit marginally but the premise is to capture consumers that you may or may not have captured (Mojo Media Labs, 2017). Crunching the numbers to ensure that your business will drive some type of profit is essential to ensure that is marketing campaign is profitable for the businesses bottom line (Mojo Media Labs,
Datamonitor. (January 2005). Starbucks Corporation. Retrieved September 22, 2006 from, http://www.investor.reuters.com from University of Phoenix Library.
Starbucks Financial Analysis Company Overview Starbucks is the world’s largest specialty coffee retailer, with more than 16,000 retail outlets in more than 35 countries. Starbucks owns more than 8,500 of its outlets, while licensees and franchisees operate more than 6,500 units worldwide, primarily in shopping centers and airports. The outlets offer coffee drinks and food items such as pastries and confections, as well as roasted beans, coffee accessories, teas and a line of compact discs. The company also owns the Seattle's Best Coffee and Torrefazione Italia coffee brands. In addition, Starbucks markets its coffee through grocery stores and licenses its brand for other food and beverage products.
For one of my selections for buying stock, I invested into Starbucks, this company has attracted me with their wonders of different coffees, and I knew many others were interested in the very popular coffee company. Starbucks all started 1971 in Seattle Washington. With three men which were Jerry Baldwin, Zev Siegel and Gordon Bowker each of them put in one thousand three hundred and fifty dollars along with a barrowed five thousand from the bank to start up there small coffee shop in pick place market, witch is located in down town Seattle. The name for this company was inspired from the character Starbuck from Moby Dick; this character was a coffee lover. There close friend designed there well known logo. These men never thought of this small company to get large they just thought of it as a small coffee shop. Out of all three men Siegel was the only one that work at it full time. The men depened on a man named Alfred Peet for there coffee beans but soon then started there own blends of coffee beans. With in a year opening the first store they were able to open a second store. When the 1980’s rolled around, it was a thriving company, in the Seattle area. However, the co-founders began to have other interests and were involved in other careers simultaneously. Despite that, the company was about to undergo a major turning point. A man by the name of Howard Schultz started to pursue an interest in the company. He noticed that the coffee shop had a wonderful environment. He started asking a questions and becoming more and more interested by every moment. He loved how the founders had so much knowledge on the coffee and each blend. In 1982, Schultz became director of retail operation. This was just the start to a new phase with the company.
Groupon has done well to establish itself as a main provider for merchant to consumer discounts but will need to continue to embrace and invest in changing technology to ensure it is able to translate that advantage into solid returns for merchants both as single purchase points. As well as facilitating long-term relationships between merchants and subscribers. Groupon will need to lead the pack in early adoption as technology continues to evolve and paths between marketers and consumers shorten. Diversifying offerings to merchants and subscribers will enable Groupon to remain useful and relevant in a climate of change but they will also have to continue to deliver on its initial mission to bridge the gap between e-commerce and brick and mortar merchants. Groupon is in uncharted territory in a vertical who’s track record has not yet been established, making it hard to foresee if Groupon’s business model and growth is sustainable in the long run.
The increased interest of social media usage has led numbers of company and business to provide new experiences for their customer to leverage media platforms to make more efficient and effective purchases (Rad, 2010). In addition, the emergences of Web 2.0 technologies are dramatically changing the web collaboration concepts, which made the web more social and interconnected. The aforementioned phenomenon is called “social commerce”. It is a subset of electronic commerce, which utilize social media, or online media that support interaction and user contributions to enhance the online purchase experience.
This is the possible way to attract more new customers buying with Groupon and develop Groupon in their mind. If they are happy with their previous purchase from Groupon, the possibility to continue purchase from Groupon has been increased.
Nithin Geereddy. 2013. Strategic Analysis of Starbucks Corporation. [ONLINE] Available at:http://scholar.harvard.edu/files/nithingeereddy/files/starbucks_case_analysis.pdf. [Accessed 18 April 14]
We now live in a fast-growing world of technology. There is no surprise of how fast the online market has grown. Groupon has a simple business model and are known for acting as a “middleman” between customers and the suppliers. The suppliers or service providers, agree to give Groupon’s customers, the subscribers, a discounted price for their goods and services if Groupon attracts enough subscribers to be qualified for the discount deal. As Groupon continues to grow internationally and become more and more successful there are many strategies and efforts that they will constantly need to work on.
In 2003, Starbucks was listed as one of the Fortune 500. Despite the ongoing recession, the company had managed a 31% increase in net revenues for the year. This was reasonable, considering they only spent about 1% of total sales on marketing. All of this, coupled with the fact that they were popular with customers and employees, was a sure recipe for success.
“Starbucks was named after Starbuck, first mate of the whaleship Pequod in Herman Melville’s Moby Dick…Starbuck was pluralized for ease of use” (Burks, 2009, p. 1). Now President, Chairman, and Chief Executive Officer, Howard Schultz formed Starbucks Corporation in 1987 after purchasing the name Starbucks, six stores and a roasting plant from previous owners, Jerry Baldwin and Gordon Bowker (Burks, 2009). Starbucks operates under a successful value chain management strategy. Their value chain encompasses a systematic approach to the way business is done. Robbins and Coulter (2012) point out, “A good value chain involves a sequence of participants working together as a team, each adding some component of value” (p. 520). Starbucks continually reviews every aspect of their business; from the organizational culture to values and ethics to strategy, planning and operations, management control and finally human resources and performance management, searching for those items that don’t contribute to the “Starbucks experience” which is what makes the Starbucks Corporation a successful business model.
This idea of Groupon is making them one of the fastest growing companies in the world. The Company was introduced in the year 2012 and since then it has achieved huge success. They are highly customer oriented. Winning the heart of their customers
Starbucks takes their partners very seriously as well as their well-being. This is apparent in the rewards Starbucks offers to their partners. Starbucks has what they refer to as, “Your Special Blend” which is offered to part-time and full-time partners. Starbucks offers comprehensive health coverage, a highly competitive 401(k) program with company matching, a stock equity reward program, education benefits including tuition assistance, free coffee, and paid vacation (Your Special Blend: Rewarding Our
Starbucks is a worldwide company, known for is delicious brews of coffee and seasonal varieties of tasty drinks for any occasion. Starbucks opened with two main goals, sharing great coffee with friends and to help make the world a little better. It originated in the historic Pike Place Market of Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker. The creation of Starbucks’ name came from the seafaring tradition of early coffee traders and the romance evoked from Moby Dick. At the time, this individual shop specialized in the towering quality of coffee over competitors and other brewing services enabling its growth to becoming the largest coffee chain in Washington with numerous locations. In the early 1980s, the current CEO Schultz saw an opportunity for growth in the niche market. After a trip to Italy he brought back the idea of a café style environment of leisure and social meetings to the United States we now see in Starbucks locations today. Schultz ultimately left Starbucks to open his own coffee shop, Il Giornale which turned out to be a tremendous success. Fast forward a year later, Schultz got wind that Starbucks was going to sell all their components of Starbucks including their stores and factories, he immediately acquired the funds to buy Starbucks and linked both operations. Within five years he was able to open more than 125 stores starting in New England, Boston, Chicago, and gradually entered California. He wanted Starbucks to be a franchise system based on the mission of telling the truth and emphasize the quality,
Hook: From “Cyber Monday,” to coupon codes, and free shipping, online shopping has gone from an alternative solution to a primary source of consumerism. Have any of us ever thought about why social media has introduced those annoying advertisements literally every site now days. Without consumerism, capitalism would not flourish the way it does in society. It’s commonplace for the average person to spend a few hours a week (or more!) online. Whether it’s Facebook, Pinterest, Twitter or Youtube, sites makes it easier to become consumers, there’s always a plethora of enticing advertisements. In fact, Twitter’s new poll system helped me paint an accurate picture of the epidemic of online shopping. With only 24 hours allowed for this poll, we got a conclusion that I was expecting, the final vote depicted that 56% of 1,165 people said they were addicted to online shopping (@Ramos4LA). Considering that, it’s clear to make the connection between pesky ads on social
When I saw this discussion, I couldn’t help but think of Starbucks and the impact they’ve made throughout their 45 years of establishment. I worked with them for about 7 years and saw how unique they were from your everyday coffee and latte spots. A retail company with thousands of coffee shops in the US as well as in other countries, this particular retailer has been able to catch the eyes of all ages as well as locations throughout the world. For example, today college students utilize Starbucks locations to study rather than go to a nearby library. Starbucks is also known for its best coffee and espresso drinks (Latte or Frappuccino) and with one of its delicious espresso 's any student or just a person stopping in to enjoy its lounge area where there is free Wi-Fi is awesome! Starbucks lifecycle has made a 360 turn around and been revamped twice to accommodated the growing market. Customizing their brand to fit more in with everything and not just one thing. By doing this they’ve created multiple product lifecycles within their own lifecycle as a corporate company.