Page 93 - IILMGSM Journal_Management Perspective
P. 93
panies could serve as a nice way to expand its factors which affect the buying decision of the online
business. Groupon is required to reinvent itself consumers using this mode and how group buying
through venturing into online retail, processing credit sites improve their models regarding the customers’
card payments and dealing with merchants. In future needs. Last but not least, the author admits that the
in order to enhance relationship with merchants, orgnisation considered in this case study has superior
Groupon can also categorize them based on the value domination over other competitors and any actions
package such as higher initial fee but lower taken by competitors do not affect Groupon much.
commission paid to Groupon. Moreover, as the Hence, the competitor analysis is only superficially
marketing cost constitutes a major share of the described in this case.
revenue of Groupon, a reduction plan is required in
order to gain profit and competitive advantage over
other competitors.
Limitations
This case focused on understanding group buying
concept and an understanding how Groupon with its
unique and distinct strategies is able to become
successful in leveraging this concept in e-retailing
business. As concept of e-retailing itself is in
developing stage in India, with the exception of
travel-related websites, only few companies have
succeeded in the sector. This concept has similar
limitation as other e-commerce models face in terms
of low awareness, poor broadband connectivity in
many parts of the country and a significant number of
consumers are still wary of using credit cards on the
Internet. As the paper is based on secondary data
only, therefore authenticity of data is limited to
credibility of various sources from where data is
collected. Hence, the result of the survey may be
quite general and only partially applied to the
research. Further, because of time constraint and lack
of primary data, researcher could not study impact of
prominent factors of success such as sales and profit
in this novel concept of group buying study. In order
to analyse the strategies that facilitate the group
buying model to develop sustainably and profitably
in India, future primary studies need to analyse
92
business. Groupon is required to reinvent itself consumers using this mode and how group buying
through venturing into online retail, processing credit sites improve their models regarding the customers’
card payments and dealing with merchants. In future needs. Last but not least, the author admits that the
in order to enhance relationship with merchants, orgnisation considered in this case study has superior
Groupon can also categorize them based on the value domination over other competitors and any actions
package such as higher initial fee but lower taken by competitors do not affect Groupon much.
commission paid to Groupon. Moreover, as the Hence, the competitor analysis is only superficially
marketing cost constitutes a major share of the described in this case.
revenue of Groupon, a reduction plan is required in
order to gain profit and competitive advantage over
other competitors.
Limitations
This case focused on understanding group buying
concept and an understanding how Groupon with its
unique and distinct strategies is able to become
successful in leveraging this concept in e-retailing
business. As concept of e-retailing itself is in
developing stage in India, with the exception of
travel-related websites, only few companies have
succeeded in the sector. This concept has similar
limitation as other e-commerce models face in terms
of low awareness, poor broadband connectivity in
many parts of the country and a significant number of
consumers are still wary of using credit cards on the
Internet. As the paper is based on secondary data
only, therefore authenticity of data is limited to
credibility of various sources from where data is
collected. Hence, the result of the survey may be
quite general and only partially applied to the
research. Further, because of time constraint and lack
of primary data, researcher could not study impact of
prominent factors of success such as sales and profit
in this novel concept of group buying study. In order
to analyse the strategies that facilitate the group
buying model to develop sustainably and profitably
in India, future primary studies need to analyse
92
