Does Groupon have a sustainable business model

Consumers on the other hand also enjoy discounted prices for their products as well as voucher rewards hence to a majority it could appear as a successful company. However, Groupon being a web marketing company and that it does not manufacture its own products; it has little say on the negotiation resulting to less control on its profits. Groupon does not hold stock nor do satisfaction, so it depends 100% on interested dealers. Also, as years go on competition is greatly increasing and new companies with new ideas are emerging like LivingSocial which increase competition for Groupon and in spite of the fact that it is a significantly littler organization; it is additionally developing quickly with dealers like Amazon that offer half off gift vouchers.

There are additionally organizations like Priceline and Travelocity who fundamentally offer marked down items. It brings issues to light, builds movement and procures new clients. It additionally makes them aware of the circumstances by being innovatively updated. Rather than printing out the coupons, a customer would now be able to exhibit the coupon on a cell phone. While drawing in new clients, a few organizations get email addresses from the clients which thus would produce significantly more cash in online income as they frequently send notifications emails to the customers. Other merchants are skeptical about the Groupon as it is an online platform which some people find hard to trust. Also Groupon 2. 0 helps in increasing customers for merchants. For only $30 per year consumers are able to subscribe to a VIP program where they can enjoy quick and early deals as well as flexible refund terms.