Page 87 - IILMGSM Journal_Management Perspective
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hodology websites. It has experienced dramatically fast growth
in the past few years. As a result of its fast and
Literature of research describes deductive and significant growth based on a simple business
inductive as two popular research methods. concept it has attracted numerous imitators and
Deductive reasoning is the science of logical thinking thousands of clones evolved all over the world
from a general theory to a particular idea while (Underwood ,2010).Groupon is a deal-of-the-day
induction is the way of reasoning from a detailed fact website that features discounted gift certificates
to a general principle. In this paper, first approach is usable at local or national companies. Groupon works
used by studying the concept of group buying in on the basis of the power of collective buying. The
general and examining how Groupon is leveraging name Groupon itself is derived from the combination
this concept in India afterwards. It can be analysed of words - “Group + Coupon”. The idea for Groupon
that in India, many group buying organizations have was created by the current CEO and Pittsburgh native
closed their operations (such as Dealsmagic.com, Andrew Mason. The idea subsequently gained
MasthiDeals.com and Taggle.com), while many have attention of his former employer, Eric Lefkofsky,
changed their business models. Only some of the who provided $1 million in “seed money” to develop
prominent players like Groupon India remain in the the idea. Groupon was launched in November 2008.
original business. Therefore, the focus of this study is By October 2010, Groupon served more than 150
to analyse the concept of group buying and how this markets in North America and over 100 markets in
concept is used to change idea of e-retailing in India Europe, Asia and South America; and had 35 million
by means of a case study approach. Specifically, registered users. Groupon went public in November
focus of this study is on learning how Groupon is of 2011, raising $700 million at a market
able to leverage this concept of group buying and capitalization of $12.5 billion. By 2012, Groupon has
what is making it to become successful in Indian said to have lost 80% of its value since its initial
market. Secondary data sources were used to gain a public offering over one year ago. But still today,
comprehensive and in-depth understanding of the Groupon as a concept is sitting on potential of USD
group buying concept and specifically strategies of 2-2.5 billion (Economic Times report, 2013) and
Groupon to take advantage of this concept in India. having presence in 500 markets across 48 countries
(Popper, 2013).
I. Groupon leveraging concept of group
buying
Groupon, which was established in 2007, is one of
the most eminent and accepted group buying
websites. It has experienced dramatically fast growth
in the past few years. As a result of its fast and
significant growth based on a simple business.
86
in the past few years. As a result of its fast and
Literature of research describes deductive and significant growth based on a simple business
inductive as two popular research methods. concept it has attracted numerous imitators and
Deductive reasoning is the science of logical thinking thousands of clones evolved all over the world
from a general theory to a particular idea while (Underwood ,2010).Groupon is a deal-of-the-day
induction is the way of reasoning from a detailed fact website that features discounted gift certificates
to a general principle. In this paper, first approach is usable at local or national companies. Groupon works
used by studying the concept of group buying in on the basis of the power of collective buying. The
general and examining how Groupon is leveraging name Groupon itself is derived from the combination
this concept in India afterwards. It can be analysed of words - “Group + Coupon”. The idea for Groupon
that in India, many group buying organizations have was created by the current CEO and Pittsburgh native
closed their operations (such as Dealsmagic.com, Andrew Mason. The idea subsequently gained
MasthiDeals.com and Taggle.com), while many have attention of his former employer, Eric Lefkofsky,
changed their business models. Only some of the who provided $1 million in “seed money” to develop
prominent players like Groupon India remain in the the idea. Groupon was launched in November 2008.
original business. Therefore, the focus of this study is By October 2010, Groupon served more than 150
to analyse the concept of group buying and how this markets in North America and over 100 markets in
concept is used to change idea of e-retailing in India Europe, Asia and South America; and had 35 million
by means of a case study approach. Specifically, registered users. Groupon went public in November
focus of this study is on learning how Groupon is of 2011, raising $700 million at a market
able to leverage this concept of group buying and capitalization of $12.5 billion. By 2012, Groupon has
what is making it to become successful in Indian said to have lost 80% of its value since its initial
market. Secondary data sources were used to gain a public offering over one year ago. But still today,
comprehensive and in-depth understanding of the Groupon as a concept is sitting on potential of USD
group buying concept and specifically strategies of 2-2.5 billion (Economic Times report, 2013) and
Groupon to take advantage of this concept in India. having presence in 500 markets across 48 countries
(Popper, 2013).
I. Groupon leveraging concept of group
buying
Groupon, which was established in 2007, is one of
the most eminent and accepted group buying
websites. It has experienced dramatically fast growth
in the past few years. As a result of its fast and
significant growth based on a simple business.
86
