Business Model Canvas

Business Model Canvas BY yok0721 Describe the business using the BMC Customer segments From the map above, the organisation can focus on their customers’ area, which is mass markets model for customer segments. Groupon Company (2013) states that we have 39. 5 million customers in the world, and they also will recommend friends and family to Join in Groupon deal activities.

Therefore, the public who includes women, student and singles will create a lager number of value for this organisation. Furthermore, Gil (2013) claims that Groupon business model are suit to modern consumers.It seems that the most modern consumers love to spend money for uality life. Value propositions The price and customization will determine the value propositions for organisation. Firstly, Groupon which is contact with local merchants could provider a deep discounts for customers.

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The organisation will accelerate potential customer to purchasing for local merchants. Young (2011) indicates that Groupon Company provider a powerful of online advertisement to new customers through its daily email.This view is valid in that company will give a tremendous exposure to attract customers by deep discount, so the model will be a win-win situation. ??? Channels Arioli (2013) states that the main operating service of Groupon Company is online sell for their customer.

For instance, email, website and social network. It seems that Facebook and Twitter could be used on operating online channel, because the most of student have own social network tools, so advertising on these social networks will attract more and more consumers.Nevertheless, the company is developing a new channel for their customers, and mobile channel will rely on smartphone app to spread discount information.

??? Customer Relationships Building a trusted relationship between customers and Groupon Company will ecome an important aim for Groupon Company. Many competitions are copying Groupon model to plunder the market share, so the company must maintain customer base, by means of feasible management and reliable brand. Group Company not only includes the high quality of activities, but also it needs to provider a return and reimbursement for unsatisfied customers.Moreover, the company needs to deal with the relationship between customers and local merchants, because long-term sustainable model will be required to build a steady relationship. Revenue Streams The revenue steams is a paramount important part for business model, it will help hat once customer has finished payment online, they should print out cash coupons immediately, and the company will pay to merchants afterward activities. In addition, the customer could use diversified payment systems to help client purchasing discount coupons.It seems that customers could prefer using online payment, because online payment will offer convenient and faster environment. Key Resources Key resources are important assets, which focus on business activities.

The key resources of Groupon Company include intellectuals, customers, merchants and HR manager. Some of intellectual manager will prepare customer database in the online rea. Keeping a feasible relationship between customers and merchants will improve their profits. Furthermore, HR manager could ensure general operations of Groupon.Key Activities The core business of Groupon involve in sell campaigns, which can be researched by marketing staff. First at foremost, Groupon Company will distribute their business by region.

Then, the company who could expand advertisement on newspaper and website will talk an agreement with local merchants. Moreover, the large number of staff will be required to deal with customers’ problem and merchants’ business, and ome of employee could need to design advertisement which have to attract potential customers on website. Groupon have an own page on website, the general manager also need to maintain operating. ?? Key Partnerships The company is developing partnerships to expand markets rapidly. There are a good explain about key partnership. From Swisher (2011) reports that Groupon is talking with Chinese Internet giant Tencent building a partnership to accelerate developing Asian markets.

In terms of Tencent has vast customer base more than other company in China market. However, after successful entry in China, Groupon suffer many local ompetitions, so they need to rely on more and more local merchants to establish new partnerships.Cost Structure The costs of Groupon have established development of its the advertising costs, labour costs, website platform, IT operations and other costs. However, the Groupon Company has identified a problem about the long-term profitability, so a major problem is raising costs of the local merchants. Furthermore the advertising cost will very expensive, therefore Groupon need to invest a larger number of fund into developing advertisement. Groupon also needs to invest in new researcher who elps this company to develop knowledge of local market.

Business Model Pattern The business model pattern of Groupon Company is multi-sided platform. Hagiu (2007) reports that multi-sided platform is one of business model patterns, which have two or more interdependent groups of consumers. Typically, the Groupon Company model is win-win situation between customers and local merchants. The then many customers can purchase some deep discount goods and services on website.

It seems that the Groupon Company will become an agent, who strengthen the consumer bargaining power with local merchants, between customer and erchants.On the other hand, the supply side can get a fixed demand from the market, it also improve profits with supplier. Therefore the model is a feasible business model. However, This model is valid in that the company’s platform creates value by interactions, as the network effect.

Hence, expanding its business to other area will create a larger number of profits, and it is benefits to protect a sustainable relationship between merchants and customers. In essence, the Groupon Company is turning to customers into buyer’s market, and they protect customers’ rights and profits.


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