Read the case study. Compare the case study to a current event or silimar situation. compare this situation or event to the case provide link to situagion or case

Groupon: Decisions! Decisions! Decisions! Groupon, an Internet coapon company, was founded in offers are enique and lure consumers into new neighborChicago in November 2008 by Andrew Mason, a young boods and experiences,... [t]lhat's less true in second- and entrepreneur who was working with $1 million in seed third-ticr cities... where Groupon relies on merchants to money provided by Internet entrepreneur Eric lefloorsky, come to ie."11 Although Groupon is the dominant player who was Mason's fotmer boss." Groupon's business in- in celine coupons, "its brand only takes it as far as it offers novation is merging collective buying with coupons, the hest deals from the most sought-after local retailers, hence the company's namet group plas coupon 2 Ac: tectaurants and services- the kind of businesses that used cording to Mason, the strategic goal of Groupon is to to reide in the Yellow Pages and 510 coopon books."12 "fundamentally change the way that prople buy from A major challenge for Groupon in pursuit of its stralocal businesses in the same way that ecommeree has tegic poal is to retain the merehants beyond the first claanged the way that people buy products. 1 How doe coupon deal with them. Early reports indicated that as Groupon benefit from changing the way people buy auny as osehalf of small busineses did not contiaue to from local merchants? The answer is Groupon collects participate in Groupon deals, and the majority of those "half of actual sales, not just profits, in exchange for the ceased to participatr because the first deal was anprofitintroduction to a new cuitomer, 4 able. . In attempting to counter this merchant drop-of: The Groupoe business model is based oe "[clonsum- effect, Gqocpon hired a customer relationship masageens sign[ingl up to receive offers from local firms by e-mail ment agency to track merchant satisfaction; "Groupon each day, ranging from restaurant meals to pole-dancing says early surveys have shown 95% of businesses say lessons, at discounts of up to 90%. But Groupon made vir they want to woek with the company again. "14 tual coupon-clipping exciting by, first, having offers expire Groupon's success has attracted much attention after just a few hours and, second, cancelling them if they among the internet business community, Indeed, in late do not attract a minimum number of buyers (the 'group' 2010 Googk made a 56 billion buyout offer to Grouin Giroupon)." "A certain number of people need to huy pon, a sum that was nearly twice as much as Google into any given deal before it kicks in, or 'tips' in Groupon had previously offered for any acquisition. " Mason. parlance, Once the deal tips-for example, 200 people however, rejected the buyout offer, a decision that one have parchased a $40 cospon for an $80 massage-the observer characterited as "frustrating, maddening and merchant and Groupon split the revenue roughly 50r50, inexplicable to most people." 16 Impressed by Groupon's and a group of customers has an unbeatable bargain." meteoric fise, venture capitalists say that Google's inGiven that a minimum number of people need to buy into terest in acquiring Groupon is easily explained and una coupon deal before it tips, buyers eagerly spread infor: dertood. - "Given the potential for future profitable mation among family aad friends, which in turn increase growth, 56 billion may be just fraction of its ultimate the number of buyers. This effect is like a snowball rolling value in the market. "is Who wouldn't want to own a rapidly down a steep hill, and it can bencfit both Groupon mooey machine like Grovpon? and the merchants in the short-eerm. In carly Jane 2011, Groupon filed paperwork with Since its inception in Nowember 2008, Groupon has the United States" Securities and Exchange Commission grown like wildfire. By 2010, Groupon was operating (SEC) for an Initial Public Offering (IPO) of stock, with in 150 markets in the United States and 100 markets in the objective of raising 5750 million. 19 Speculution in the Earope, with approximately 35 million registered users." dxys following the IPO filing indicated that the amount By early Jone 2011, Groupon reported having 83 mil- of money Groupon could raise might be significantly lion subseribers in 43 countries," including an entry to more than $750 millson. Indeed, one observer sugeested China in March 2011."10 that Groupon "may leaptrog Google Inc. as the biggest Groupon securely dominates the online coupon mar- US. Internet-related initial public offering ever." Aa Anket in Chicapo, New York and San Francisco, "where its other reporter said,-Groupon has every iscentive to IIO