Groupon

Groupon

Introduction

This assignment is based on the Groupon E-Commerce Company which has been going through the change process. Groupon is U.S. local based company that serves as an intermediary between merchant and consumer. In this assignment the overview of the company will be given and change process will be highlighted, however some of the suggestions will also be provided for the problems that Groupon is facing.

Discussion

Company Overview

Groupon is one of the very well known local electronic commerce (e-commerce) online place that has its function in United States and serves as a platform for merchants to connect with consumers and for consumers to interact with merchants. Merchants interact with consumers through offering discounted goods and services (Mart, 2011). The company Groupon provides information to its subscribers and clients through emails regarding goods and services on discount. The company provides information on the basis of subscriber's personal preferences and location. Furthermore it also delivers access to offered discounted deals on its online website and also through cell phone applications. The company also has its functions in Germany and Netherlands and has it's headquarter in Chicago. Groupon has employed approximately 11, 147 people.

Company's Financial Position

At the end of the fiscal year in December 2011, the recorded revenues of the company were $1,610.4 which were comparatively higher than the revenues at the end or fiscal year 2010 i.e. $312.9million. The operating loss of the company in the fiscal year 2011 was approximately $ 233.4 million which was identified low as compared to the operating loss in the fiscal year 2010 that was $ 420.3 million. Whereas it's net loss was also identified as $ 373.5 million in 2011 as compare to net loss in 2010 which was $456.3 million (Market Line ,2012).

Groupon Management Changes

Even though the Groupon Company is considered one the largest online company and provider of retail services online, but the company is facing serious issues in its declining share prices. After facing net losses in the stocks, the company has been planning its management. The company management has been looking for new CEO after replacing Andrew Mason. However, Lefkofsky has replaced Andrew. However, there were also some of the issues in the business model of the company. It is easy to start and settle down the business but it becomes difficult to standout and sustain it for long time. Companies are required to keep their businesses customers that are involved in operations and dealings, happy (Groupon, 2012). In case of Groupon, there were several merchants who became hesitant to offer their deals because of they were not getting enough business and repeat customers once they tend to stop their promotional activities, and moreover they were getting little in payments. In order to keep the businesses of the company flourishing and growing, the company is required to make more from their each subscriber rather than adding further email addresses to send email the lists of deals their merchants are offering. Groupon had been facing issues because its investors were actually getting curious ...