Groupon

Groupon is a site of e-commerce based on the concept of bulk purchasing .The group works with a type of purchase where a group of people purchase together to get a substantial discount on a product.

Groupon site is active in major cities of the United States, Canada, Brazil, France, Belgium, Germany and UK. It was launched in November 2008 in Chicago. Subsequently, it was readily available in Boston, New York and Toronto. The site at that time had 35 million registered users. "Notably, this model is economically viable for a trader or a partner when the margin of its performance or its product is over 75%, which is rarely the case."

History

Andrew Mason, native of Pittsburgh and creator of the site is the current CEO of the Groupon company. Its first work was in a restaurant in the same building as their office where they offered a pizza with a 50% discount.

Groupon is now growing rapidly with expected sales of $500 million for the year 2010. According to a report published in the magazine Forbes and a report in the Wall Street Journal, Groupon should "generate $1 billion faster than any other company".

Business model

Groupon displays a range of product per day in each market it serves. The offer provides a product with a discount of 50-90%.The offer is available on the Groupon website and is emailed to members who have registered on the site of Groupon. The provision states: the detailed description of the product offered, its regular price, the discount offered by the supplier, the price after the discount and the minimum number of products to be purchased for as sales are concluded.