Strategy Reflection

 Strategy Reflection Paper Author’s Name Institutional Affiliation Course Code and Name Professor’s Name Date Strategy Reflection Paper The Groupon Case Study demonstrates how Groupon, an online daily deals pioneer, generates value for businesses and consumers (Lancellotti-Young, 2011). Groupon's first step to provide value for users is giving consumers "extremely marked down prices over diverse experiences, from local services like dining establishments and recreation to major retail, travel, and live event brands" (Ates et al., 2020). Groupon can negotiate such substantial discounts with retailers by harnessing the collective buying power of its user base. This makes Groupon naturally appealing to consumers not looking to downgrade but to get the same quality goods and services they'd pay full retail price for at a fraction of the cost (Ates et al., 2020). For merchants and consumers alike, Groupon's website acts as a discovery platform, exposing consumers to activities and establishments they wouldn't have otherwise known about. Groupon effectively adds value to retailers through its robust marketing and advertising platform, which showcases their products to a vast target market. Partnering with Groupon allows businesses to expand their reach and attract potential customers actively seeking deals and discounts (Ates et al. 2020). The revenue-sharing model offered by Groupon serves as an incentive for retailers to participate, as it provides a cost-effective means to acquire new patrons and boost sales. This partnership benefits both parties, as retailers experience an increase in sales and brand recognition, while Groupon earns commission fees on completed deals (Ates et al., 2020). Essentially, Groupon serves as a mutual source of benefit for both its partner retailers and itself. Could a less sales-intensive approach like Groupon stores be the next phase of product growth? The opportunity for Groupon Stores lies in offering Groupon the potential for its next step in product expansion. It allows Groupon to empower merchants to create and manage their own deals, which means Groupon could expose if not adopt a less sales-intensive model. Instead of a sales force, Groupon moves toward a less sales-intensive model, which essentially decentralizes deal creation and allows merchants to tailor promotions to their own needs and wants. As a result, Groupon Stores may attract a broader swath of retailers by convincing companies that have not considered joining Groupon either because they didn't want to feel pressured to sell, or thought that such a model would make over the top demands on their time (Lancellotti-Young, 2011). With a less sales-intensive model, the self-service solution could expedite merchant onboarding and help Groupon to expand its business in a more efficient way. Groupon Stores also fits into a larger trend in digital marketing and e-commerce towards automation and self-service, by putting a handy platform in place for merchants to promote their goods and services independently. This hands-off approach may be very attractive to yet another group of merchants, who may include specialized markets and comparatively smaller businesses; they need marketing help that is less manpower-intensive. Meanwhile, Groupon Stores also has the potential to improve the overall user experience by allowing the company to...