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The Return of Group-on?
Posted by: Kevin Yu | September 30, 2012 | Leave a Comment
Since its strong public market launch in November 2011, Groupon, the pioneer of online dealing service companies, has been losing its users, as its IPO(Initial Public Offering) of $26.11(NASDAQ) declined to its present value of $4.76. Whether Groupon is desperate in the state that it currently occupies, or from its starting interest in a different market, the company has taken a new approach towards its value positioning in consumer’s minds.
Groupon has recently initiated a credit card payment business on Wednesday, September 19th, 2012. The company elaborates its new sector as a service that “lets restaurants, salons and spas, retailers and other local businesses accept credit card payments at a lower rate than other providers.” For instance, while stores that have deals with Groupon will accept “.8 per cent for MasterCard, Visa and Discover cards, on top of a 15-cent fee per swipe” as their payments, stores without the contract with Groupon will charge “a higher rate of 2.2 per cent”. It is interesting to note that Groupon’s goal in incorporating this concept into their business is not to make an enormous profit, although plenty of opportunities can be foreseen; it plans to obtain “more data on how many customers bought deals, when they came into stores and how much they spent.””. If this plan results in success, it may be the only option that Groupon have in establishing its position in Internet-based Dealing enterprise.
https://www.youtube.com/watch?v=oZ4BIO-gtAs
Source Cited
BARR, ALISTAIR. “The Globe and Mail.” The Globe and Mail. N.p., 19 Sept. 2012. Web. 01 Oct. 2012. <http://www.theglobeandmail.com/report-on-business/international-business/groupon-launches-credit-card-service/article4554437/>.
Photo Credits
Cohn, Emily. “Groupon Payments To Challenge Square, PayPal (PHOTO).” The Huffington Post. TheHuffingtonPost.com, 19 Sept. 2012. Web. 08 Oct. 2012. <http://www.huffingtonpost.com/2012/09/19/groupon-payments-square-paypal_n_1897233.html>.
Video Credits
“Trading at Noon: Groupon Gets Its Groove Back.” YouTube. YouTube, 19 Sept. 2012. Web. 08 Oct. 2012. <https://www.youtube.com/watch?v=oZ4BIO-gtAs>.