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With the power of social networks, the desire of people to find deals on the Internet and the difficulty small businesses to find customers, there are sites that offer between 50 and 90% discount when an offer is accepted by many people within very limited. Taking advantage of this trend in Marketing, Rob Solomon became President of Groupon with idea of converting the company into the next eBay.

Nominated by Forbes as the fastest growing company in the history of the web, Groupon takes the desire of consumers to make online Pichincha and the power of networks to create a business socials with impressive sales.

Groupon – whose name originates from the word “group” and “coupon” – negotiating agreements with deeply discounted primarily with small businesses and e-mail alert to his legion of subscribers on the offers, which tend to be 50%.

The agreement becomes final when a minimum number of users buy Boucher and consumers are rewarded if their friends also buy. The discounts range from 50% to over 90%, but purchases must be made within a certain period, usually 24 hours. To entice buyers, editors Groupon marketers are true artists in the language of the Internet.

Soon Groupon with the help of its powerful marketing has skyrocketed into the stratosphere of e-commerce. Founded in 2008, Groupon now reaches 25 million subscribers in 29 countries. The Chicago-based company, serving more bargain hunters that his biggest rival, LivingSocial, which has more than 10 million subscribers in the U.S., Canada, Great Britain and Ireland. Dozens of similar sites have sprung up to exploit the trend of buying groups. But in a fragmented market with low barriers to entry, Groupon is by far the largest by far. .

The question is whether these sites are an enthusiastic group purchases passenger will happen with the speed of 70% discount. Kartik Hosanagar, professor of operations management at Wharton, believes it is not a fad. According to him, social commerce sites exploit simultaneously the needs of small businesses and consumers looking for opportunities.

Huge discounts and shopping social nature attract those who spend their days on the internet while small businesses achieve massive exposure without the costs of marketing and ads in newspapers and magazines, radio and television.

“For them to get clients costs are very high. Groupon allowed to get in a fairly efficient, “added the professor. “In addition, the business model harnesses the power of social networks and the collective purchase of a very natural way. That’s why I think that is here to stay. “

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