The Groupon Disaster - A Case Study for Entrepreneurs
ฝัง
- เผยแพร่เมื่อ 15 ธ.ค. 2016
- Subscribe to Valuetainment: bit.ly/2aPEwD4 Groupon Case Study for Entrepreneurs- The Biz Doc, Tom Ellsworth dives into case study #5 with a lesson on business models and reputation management. This lesson is derived from the pioneer of digital marketing you may know as Groupon.
Visit the official Valuetainment Store for gear: www.valuetainmentstore.com/
Grab your notebook, take notes and join the conversation as Valuetainment brings you case studies with The Biz Doc - a new way to learn entrepreneurial lessons. Please subscribe, comment and share to help educate entrepreneurs from all over the world.
About Tom Ellsworth: THOMAS N. ELLSWORTH, is an experienced CEO / COO and veteran entrepreneur. He has been disrupting industries and driving consumer shifts through Venture-backed companies in technology, software development, publishing and mobile that have generated exits totaling over $1B. Watch the interview with Patrick Bet-David: • The Man Who Sold 4 Com...
Connect with Tom: / thomasellsworth
About: Groupon is an American worldwide e-commerce marketplace connecting millions of subscribers with local merchants by offering activities, travel, goods and services in more than 28 countries.
Valuetainment- The Best Channel for Entrepreneurs
Tom, once you hit 50-100 case studies here (It will happen!) Valuetainment needs to put out a book with all of them - The Biz Doc's Case Studies.
+Anuroop Kumar I love that idea! - Thanks - Tom
when someone asks me what you study, I say I do my MBA from VALUETAINMENT
+Urvish Bhatt - that is our goal and I appreciate you said it. - Tom
if you guys do offer an MBA I'm game
I'm secretly listening to your videos while I'm sitting in a boring production meeting. Watching your videos is much more productive. Great job!
Thanks for the awesome case study!!
Love these videos, great information, really focused investors on looking deep into the financials and past they hype. Also no 2minute long in video sponsorships that are just unskipable ads !! Thank God. Keep up the amazing work
I absolutely love this guy, usually I hate lectures / long talks but this guy I happily listen to. absolute talent! Keep it up :)
+skateboardervans thank you so much - Tom
These are awesome, and very informative, please keep doing them.
+Kirk K absolutely. See you every Friday. - Tom
I'm not into business but I watch these videos because they are interesting. They also teach lessons on how things can go wrong/right, and you can apply them to other kinds of situations, not just in business.
This Case Study is absolutely GOLD , BEST youtube channel! Thank you guys ,
+Salman Ali Thank You!! That's our goal!! - Tom
Thank you so much Mr. Ellsworth, for providing us all the insights.
I think you are doing a fantastic job with these videos. All the very best and thank you!
These video are great man! Love them!
I hope you'll reach the one million subscription one day cause your videos and program are really worth watching.Good luck
+koreishite - thanks for the kind words. - Tom
Love these case studies, short + factual + great insights, keep it up!
Young entrepreneur here. I just discovered this video series and they are very informative. Thank you!
Man i love these case studies, thank you Mr.Ellsworth
+Aztec Lordu - thank you for watching. - Tom
A bad business model can sink the ship.....I love your case studies and book recommendation. I have been trying to adjust my business model and I found golden nuggets to be applied. Thank you, Tom
Hi Tom. This is the second video of yours that I am watching and would like to thank you for the time taken to make this informative video. Really insightfull and well illustrated!!! I don't usually comment on videos, but this is worth it. Looking foward to more
Amazing case study! One of my favourites! Up late Saturday night studying business case studies 💪🏽
That was a very pleasant material to watch and I'll definitely be staying for more, Tom. I have subscribed to this channel.
Splendid and insightful. Truly the best content on the internet for entrepreneurs. Many thanks Valuetainment!
Excellent case study!! waiting this for long time!!
Thank you Tom! Very Interesting case study.
this was really helpful. Thank you so much
I used to work for Groupon as Business Development Manager. It failed because they were greedy and did not put the vendor's interest first. It was profit before anyone's well being, and I say this as an insider that negotiated deals with vendors first hand that worked for Groupon for 4 years
Hey Nazeem. Are you available to chat on fb messenger? I am currently working on a similar project but this video just got me to step on my emergency breaks and reasses things.
@@TheAvira123 what's your idea? im also working on something similar.
Amazing work! Thanks for this channel!
It was interesting to know. Thanks.
lol, this is my first viewing of Valuetainment's case studies - I love this guy! And wow @ groupon... how does one turn down a deal from Google - 6 billion dollar deal? Hurts my brain trying to wrap my mind around it. Thanks for the book reference, I'm definitely going to read it and study more about various business models and stories like these!
+Dreighen Thanks! Glad the book is helpful! - Tom
Hey Tom, you're a fantastic orator and educator! Thanks for the great video brother!
Tom is a GENIUS!! Love these case studies. Keep it up!!
+Javier Martinez - thank you for that see you every Friday with the new case study - Tom
I hope everyone realizes how valuable these case studies are. Thanks Tom!
+Cami Forgiven - I appreciate your comment. Have a happy new year. - Tom
Nice video. Just keep them coming. I learn a lot with these videos.
+Stephen John thank you for the nice comment. See you every Friday with the new case study. - Tom
Great case story Tom. Valuable lesson.
Tom, great job! loving the case studies. So many great lessons, and you've only just started. looking forward to many more to come. Thanks for helping us entrepreneurs find our way in the business world that is peppered with land mines.
+Christian R. You are welcome! - Tom
Entirely not my field, but your videos are still very entertaining and educational to me. Well done!
Awesome one once again. Thank you Tom.
+Allabakash Shaik thank you very much, I appreciate that you're coming back to watch again. - Tom
Just stumbled across these, great stuff.
Excellent education on being aware of the central importance of verifying RECURRING revenues.
I can't imagine that I lived a life without the Biz Doc.
Love these segments Tom!
+Enoch Escalera thank you for watching. - Tom
This is a great channel!
great stuff man. this kind of content separates the entrepreneurs from people who just like the IDEA of it. This is REAL!
+Rafi - awesome comment! "REAL" is where profitable businesses live! - Tom
So glad I watched this video today. By tomorrow afternoon I'll have this book or at least on its way. A lot of my model I know is in the right space, but specifically pricing, that's been a little difficult, but it's getting there.
Tom this business model generation book is really great and they study how companies are creating innovative business models and create better businesses. Thank you for recommending it .
Thank you tom for your knowledge! Any chance you have a list of books you recommend? Thanks!
+léo Castel - yes; my top three books for entrepreneurs are:
The Lean Startup,
Zero to 1, and
The Business Model book from this case study.
There are many more that I like, but those three are the basics I recommend for any entrepreneur.- Tom
Around 2014, my family was offered a chance to be a merchant on Groupon what really stuck out was that Groupon (Singapore) kept all the money from people who bought our coupons and we only got the money IF and when someone redeems the coupon. Groupon got to keep the unclaimed coupon fees.
👍🏼 😁 LOVE your channel. Wish it were around when I was getting my MBA. 😜 Thanks!
Thank you . I am waiting for next one.
+Crazee World you are welcome, every Friday we will have a new case study - Tom
Hai Tom, this is really mind-opening for me. I totally agreed with your opinion on the business model for both Groupon and Living Social.
You saved my life and my assignment right noww!!!
Really need this working on a app myself
Hi TOM, I don't remember how i end up here. But your stuff is very educative and enjoyable. I watch it till the end. Good job tom. Succes.
Hey Tom, super interesting! This series becomes more compelling each week. I like the mix of successful and failing companies you have been giving.
My only comment would be to try to give a short glimpse of the future for these companies based on your extensive knowledge.
+pecenak21 - I think that's a great point. A little glimpse of a future forecast would be interesting to add. I appreciate the comment. - Tom
I think Groupon does work well for athletic classes and groups, so long as the price jump isn't too high and you get a bonus for continuing. It has to be the kind of business that gets you "hooked" and requires a long term commitment to be of benefit.
great video Tom, thank you
+oliverv94 you are welcome - Tom
Awesomely presented ❤
Interesting and good information.
Fascinating... That whole convo of "vanity stats" really got my attention. Thank you!
+joshuaogaldez thank you for that comment, that's an important lesson that was inside this case study: "Vanity stats" are ALL
SHOW and don't reflect a real business model! - Tom
Very informative video! Thank you!
+ghcurse appreciate you watching my videos - Tom
good presentation. I like the way you make your presentation. Great skill of making it interesting.
Awesome case study, crazy how someone can turn down 6B...
+The eCom Project - A painful lesson for sure. - Tom
Urjit Bhosale haha thanks man :)
They just may not have wanted to sell the whole company
I could see that with a business that is scalable, which a digital coupon business is arguably not.
You can't knock them for not taking 6 billion dollars, they had faith in their company. Imagine if a social media giant sold themselves short.
Thank you very much You guys are amazing
+Alisher Rasulzoda thank you for the nice comment - Tom
One thing I noticed was when Groupon first started in my area you could get some great deals. I used it for a vacation at the beach and was only paying $40-50 a night for a great room. Now when I check it it is the same price as any other site
Watched this twice because I never knew this about Groupon, but it also taught me about growing with the times.
+UNASHAMEDIMAGING - there you go, that's exactly the attitude to have. - Tom
Great presentation.
I love this!
+Chidubem Ezinne - Thanks - Tom
Excellent! Thx!
Man What a Great And Amusant Video !!!! The moment you've drinked that Glass of Water, Plicelesss !!!! . Much love.
Excellent video, Tom! Love the whole series.
Some of these case studies have basic lessons to learn and some more advanced. Being arrogant is more basic, everyone knows it. Business model lesson is more advanced. If you make more case studies would be cool to include some of the more advanced business lessons if you know what I mean.
+Seera Masters - I think that's a good observation and a good suggestion. Thank you very much for the comment. - Tom
Great video!
LOVE THESE CASE STUDIES
+Starlyn Rodriguez thank you for watching. See you again next Friday - Tom
Thanks in a million. Great content. Awesome imagination. Grade: A++💥
Great info and importation lessons to be learned from these case studies. Thank you.
+Hickory Homes thank you sir. - Tom
+Hickory Homes thank you sir - Tom
Thank you.
i m a merchant and i own a restaurant. groupon had approached me multiple times try to set me for some deals. after talking to them i decided not to go forward.
first and the most important issue is the cost.
groupon ONLY allow me to do a 50% off deal, and they will take 25% cut and only leave me with 25%.
which mean if i sold 100 on groupon, i only get to keep 25bucks. that mean i will lose 60buck everytime i sold 100 because my profit margin is only 15%. as a smart business owner that is a NONO.
groupon will ONLY work for new business that need to build up their customer base FAST. and merchant will only do it 1-2 times at the MOST, its because what merchant want is to have customer to come to your door. yes you will pay someone to bring customer to your door, but only for the FIRST TIME. this is why all the business owner i know will only run groupon 2-3time at the most. because groupon have the same customer base there is NO POINT to pay someone to bring in the same customers who already know your business.
anyway i just want to share my story, and i m not sure if groupon had changed since then. i just never bother to talk to them again.
this is great information for my future project....
+Adnan Daad - that's great. What kind of project are you working on? - Tom
Interesting food for thought. So investors saw this as an existing business model and didn't realize that it wasn't on the marketing/behavior side. Fascinating how VC's can make decisions and don't ask "who is adding value to who".
Great case study.
Groupon ads is a great way to cheapen your business' image and have increased sales at negative margins. It gets customers used to ridiculously cheap restaurant meals, only for them to never come back when prices revert to normal. They also take 50% of the advertiser's revenue after the discount has been applied.
Once you analyse Groupon from the perspective of it's customers, it's not hard to tell if it's stock is worth buying.
Nice video ! Keep on !
Awesome!!
Great case study
You should start your own separate channel for the biz doc case studies. I would definitely subscribe!
Awesome. Was not aware about the Google takeover bid. Can you do a video about Kodak and why they disappeared from the photography industry?
+Diogène Ntirandekura -Yes, Kodak would be a great case study. - Tom
Yeah let's see that one
Peter Diamantis in his book "Bold" does a nice case study on Kodak and how hubris stopped them from seeing the future in pixels.
also thank you for doing these I love these
+Edwin Serratos thank you for watching. - Tom
Business model! Good one.
these are awesome.
+Brandon Jones you are very welcome. - Tom
i love groupon i use the app all the time
Looking back I agree with you, the decision not to sell was a huge mistake. But at the time I don't think the choice was as simple as it appears now, remember Yahoo offered Mark $1bn for Facebook? at that time Mark faced huge pressure from the board and his team to take it, but he refused. Had Facebook flopped, we would probably be studying his case study today lol. So while it looks obvious when hindsight is 20/20, at the actual moment it's very easy to see an alternative to the obvious choice. PS an infamous brothers from Germany called Samwer brother created a clone of Groupon called CityDeal and sold it back to Groupon for $170m I believe in 2010. Great presentation as always thank you.
+STIKKAR I love the comment and the extra detail that you've provided for everyone to read. These case studies cause us to think deeply and bring up details that we saw and know from other companies such as Facebook. I appreciate the point that you brought up. I still think that Mark was far more structured and in control of a good enterprise versus Groupon. But you are correct if things were different, we could be doing the Facebook case study! Thanks again see you next Friday with a new case study - Tom
Valuetainment Definitely check out the Samwer brothers too!! Made a lot of money with ringtones (yes, ringtones), used it to start a kind of "incubator" (Rocket Internet) injecting money into "entrepreneurs" almost solely copying other people's promising start up ideas. They pump the valuation of these startups by injecting their own money again, often looking for a quick buy-out as exit strategy, sometimes with succes (as mentioned above), others crash and burn. Some actually survive on their own (I guess Zalando) It's an interesting case study of investor risk management and a lesson to entrepreneurs on warning signs of investors. Needless to say, Germany doesn't have a healthy start-up ecosystem.
i think theres a difference between 1 billion and 6 billion. not sure how long facebook was around when the deal was presented, but to be honest 6 billion for less than 2 years work? that to me seems like a no brainer, especially in IT world where someone else will come up with something cooler and more clever than yours. why risk it ?
Great Video, I knew nothing before it.
+Thomas Burgess - we want you to learn more that helps you in the business you're going to create tomorrow or the one you're running today. - Tom
You're AWESOME Tom Ellsworth! :D
+Kamsani Hussein Thank you very much! - Tom
Not sure if this should even be considered a failure, a company that started off small and ended up stabilizing at 2 billion valuation. That is really not bad at all
Kev.CKL Revenue: US$2.84 billion (2017)
Net income: US$14.04 million (2017) , that is not a successful business, that’s a crime.
Friday ☑
Tom in F1 shirt ☑
Great case study ☑
Book recomendation ☑
I SAY YES!
+jab0lpunk -
☑️Great Viewers
☑️ Great Comments
Yes!!
- Tom
It will be more lesson's can be learned from failed business model, so if can talked about failed business, tq Tom
+karttick rajan - thank you for that comment. Yes, I think I could do a case study on failed business models and cover more than one company in that case study. The business model is so important. Go pick up that book and add it to your library. (FYI - I didn't write the book and I don't have a deal with the author it's just a great book for startups). - Tom
loving the comments and info - as well as the awesome F1 tops :-)
These are all successful in my mind!
Great video, however, I think there is a bit of a misunderstanding. Groupons aren't coupons, they are paid for vouchers. While they have changed the model slightly to include cashback with a kickback today, originally it was all paid for vouchers. Ergo you pay $10 for a voucher worth 2 medium pizzas at X pizza shop. They don't just blast coupons, there was an exchange of funds in obtaining the said voucher. While the margins I'm sure are top secret, I would presume the merchant would receive a fraction of the sale to fulfill the voucher and Groupon would take their cut at the time of the sale of the voucher itself.
Awesome videos
I always thought that Groupon business model was not that great. Especially the way they treated their vendors. Last month they close Groupon South Africa and they selling it to another company. Thank you again for this awesome case study.
+Kizito Nantcha thank you for adding that, you were absolutely correct. - Tom