Groupon Essays

Groupon Essays Groupon Essay Groupon Essay Critics where divided by Groupings decision to to sell because virtually vulnerable and they have no barriers to entry. As great as Group sounds they are facing a massive problem; their business model is easy to copy. Andrew Mason, the founder and CEO of Group estimates that there are over 2000 direct clones worldwide but he insists that there is only a handful there are relevant. The biggest threat to Groupings kingdom is Livingston, although significantly smaller than Group, which raised $40 million since launching in 2009. Livingston received its biggest boost when Amazon has decided to invest $175 million into the company. Despite the severe competition, Group does not seem concerned because they believe large-scale success demanded a degree of operational sophistication that few could match. Groupings unprecedented growth and success have mainly come from two factors: focus on local merchants and a self-imposed limits to a single promotion each day. This combination helped the company to deal with minimal scale and resources and thus to increase the attractiveness of its initially rather small community. The best choice Group made was to establish their business models by cities and offering eels from local merchants has increased their attractiveness for their early subscribers. Many local merchants have tight marketing budgets who are struggle to reach customers found the allure of an outsourced online promotion with no up-front expenses very compelling. This alone became the single source of success for Group. Many people first learned about Group through their family and friends. To encourage word of mouth Group offered $10 towards future purchases for each referral. : Group became very popular among young, well-educated, unmarried and relatively affluent customers. The main reason Group became appealing to consumers was that its saved them money as well as its convenience and variety. With Group offering deals locally, consumers are able to find fun and exciting activities locally without having to travel worldwide. Many consumers feel like a tourist in their own hometowns because they are able to try new thing through Group that they otherwise will never find. Merchants Behavior: The research provided in this case study shows that Group is indeed good for merchants, but in all fairness Group is not some miraculous one-size- its-all marketing tool and so no one should expect it to be so. Selected research shows that Group equips merchants with the technology and buzz to attract high caliber consumers. Consumers that, on average, spent 40% to 60% over face value of the any given voucher, and made repeat visits to the newly discovered merchant. Ninety-five percent of merchants said they would run another deal with Group -? granted the other 5% were significantly disappointed with their Group experience. Some merchant complaints included claims that Group deals cut into their margins significantly so as to leave them in losses, the overall customer experience deteriorated with the increased traffic created by the deal and that deals created confusions as to lead to a poor initial customer experience. That is the argument that Group is not good for merchants. In selected circumstances, Group is probably not the best marketing solution, but we do not believe that provides grounds to say Group is overall bad for merchants. On the contrary, the numbers show Group is an efficient and beneficial marketing tool. Quantitative Analysis: American Apparel, with the popular deal, sold many vouchers. The email address acquisition helped in increasing online revenue. Also American Apparel negotiated the contract with Group to give them much less than half of the revenue generated from the coupons. Considering all these factors and also some of the following assumptions, American Apparel landed in profits using the Group coupons. The assumptions made are: a. American Apparel said customers who purchased the $25 group-buy deal ended up spending an average of $70 (50+20) once they cashed in the deal. So, this end up in profitability. . Low return rates are key to profitability c. Ability of the promotion to pull in new customers also leads to profitability The assumed profitability of Group can be calculated as follows Number of vouchers sold = 133,000 As stated in the case, customers spent an average of $20 above the vouchers face value when cashing in the deal. Hence, the price per unit would be around $70 This gives the total revenue as = 133000* 70 = $ 9,310,000 TO avail the voucher, the customer should pick up a product Of minimum value of $50. This can be considered as fixed cost. So, the total cost can be even as = 50 Hence, profit of the American Apparel using the group Promotion can be given as 9,31 0,OHO In the case it is given that on an average customers had spent $20 more on their purchase and this is the key to the profits. So, in case, the customers had not spend that extra amount and had just availed the offer of $25 coupon, then the profits of American Apparel would be affected and hence the profit are sensitive to this assumption. Competitive Advantage: Yes, Group has a lot of competitors from well-known public companies, including all the heavy hitters. The largest of these competitors were Washington, D. C based Livingston. Though Livingston is significantly smaller than Group, it was also growing rapidly. For Example, in January 201 1 it got a big boost by promoting $20 Amazon gift cards at half off and nearly 1. 2 Million customers took the deal. Some other competitors tried to win merchants by offering lower fees or leverages to social media. The web heavyweights Google and Backbone also tried to give competition to Group by offering its own daily deals. But all the competitors efforts failed to hit Group. All the competitors have very similar approaches to Group. In some cases the user interface is indistinguishable because the Group interface has been copied over and over. Theres no brand loyalty in the business of Group. Its strictly a deal-by-deal business by definition. We expect competition to further drive the price per coupon down, and also drive down the number of coupons purchased per customer. But in case of Group, the price per coupon started to grow up which lead to slow failure of Group. From all the above arguments, though the Group has attracted any competitors, it does not have much competitive advantage for its growth. Group 2. 0: Group 2. Is a series of new initiatives offered by Group such as Group Stores, Group Now, Group VII and Group Rewards. One major difference between Group (1. 0) and Group 2. 0 is that Group 1. 0 relies on a push model a model that attracts customers by sending mass- emails regularly that highlight a few of Groupings current deals while Group 2. 0 relies on a pull model a model in which customers v isit Group through its website, APS or internet searches to find specific deals. My assessment of Group 2. 0 is that while it has its pros and cons, it will eventually become successful. Although launched well, the Group Stores initiative was not successful and shut down soon. However, the other initiatives: Group Now, Group VII and Group Rewards, show a lot potential. Group Now is a useful smartened app for customers who are looking for a particular product or service immediately. The app helps customers find current and nearby Group deals. Group VII is an initiative that rewards VII members with access to deals earlier than non; embers as well as better refund policies for a membership fee of $30 annually. This is a great way for Group to reward their regular customers and differentiate those Group users from one-time or new users. Group Rewards is a loyalty program that allows merchants to reward Group customers for repeat coupon purchases for their specific business. For example, if a customer uses Group to purchase Spinney coupons, Spinney can reward that specific customer after he or she purchases a set number of coupons (as predetermined by Spinney). This initiative will help increase customer loyalty through rewards.

An Introduction to Queuing Theory

An Introduction to Queuing Theory Queuing theory is the mathematical study of queuing, or waiting in lines. Queues contain customers (or â€Å"items†) such as people, objects, or information. Queues  form when there are limited resources for providing a service. For example, if there are 5 cash registers in a grocery store, queues will form if more than 5 customers wish to pay for their items at the same time. A basic queuing system consists of an arrival process (how customers arrive at the queue, how many customers are present in total), the queue itself, the service process for attending to those customers, and departures from the system. Mathematical queuing models are often used in software and business to determine the best way of using limited resources. Queueing models can answer questions such as: What is the probability that a customer will wait 10 minutes in line? What is the average waiting time per customer?   The following situations are examples of how queueing theory can be applied: Waiting in line at a bank or a storeWaiting for a customer service representative to answer a call after the call has been placed on holdWaiting for a train to comeWaiting for a computer to perform a task or respondWaiting for an automated car wash to clean a line of cars Characterizing a Queuing System Queuing models  analyze how customers (including people, objects, and information) receive a service. A queuing system contains: Arrival process. The arrival process is simply how customers arrive. They may come into a queue alone or in groups, and they may arrive at certain intervals or randomly.Behavior. How  do customers behave when they are in line? Some might be willing to wait for their place in the queue; others may become impatient and leave. Yet others might decide to rejoin the queue later, such as when they are put on hold with customer service and decide to call back in hopes of receiving faster service.  How customers are serviced. This includes the length of time a customer is serviced, the number of servers available to help the customers, whether customers are served one by one or in batches, and the order in which customers are serviced, also called service discipline.Service discipline refers to the rule by which the next customer is selected. Although many retail scenarios  employ the â€Å"first come, first served† rule, other situations may call for other types of service. For example, customers may be served in order of priority, or based on the number of items they need serviced (such as in an express lane in a grocery store). Sometimes, the  last customer to arrive will be served first (such s in the case in a stack of dirty dishes, where the one on top will be the first to be washed). Waiting room. The number of customers allowed to wait in the queue may be limited based on the space available. Mathematics of Queuing Theory Kendall’s notation is a shorthand notation that specifies the parameters of a basic queuing model. Kendall’s notation is written in the form A/S/c/B/N/D, where each of the letters stand for different parameters. The A term describes when customers arrive at the queue – in particular, the time between arrivals, or interarrival times. Mathematically, this parameter specifies the probability distribution that the interarrival times follow. One common probability distribution used for the A term is the Poisson distribution.The S term describes how long it takes for a customer to be serviced after it leaves the queue. Mathematically, this parameter specifies the probability distribution that these service times follow. The Poisson distribution is also commonly used for the S term.The c term specifies the number of servers in the queuing system. The model assumes that all servers in the system are identical, so they can all be described by the S term above.The B term specifies the total number of items that can be in the system, and includes items that are still in the queue and those that are being serviced. Though many systems in the real world have a limited capacity, the model is easier to analyze if this capacity is considered infinite. Consequently, if the capacity of a system is large enough, the system is commonly assumed to be infinite. The N term specifies the total number of potential customers – i.e., the number of customers that could ever enter the queueing system – which may be considered finite or infinite.The D term specifies the service discipline of the queuing system, such as first-come-first-served or last-in-first-out. Little’s law, which was first proven by mathematician John Little, states that the average number of items in a queue can be calculated by multiplying the average rate at which the items arrive in the system by the average amount of time they spend in it. In mathematical notation, the Littles law is: L ÃŽ »WL is the average number of items, ÃŽ » is the average arrival rate of the items in the queuing system, and W is the average amount of time the items spend in the queuing system.Little’s law assumes that the system is in a â€Å"steady state† – the mathematical variables characterizing the system do not change over time. Although Little’s law only needs three inputs, it is quite general and can be applied to many queuing systems, regardless of the types of items in the queue or the way items are processed in the queue. Little’s law can be useful in analyzing how a queue has performed over some time, or to quickly gauge how a queue is currently performing. For example: a shoebox company wants to figure out the average number of shoeboxes that are stored in a warehouse. The company knows that the average arrival rate of the boxes into the warehouse is 1,000 shoeboxes/year, and that the average time they spend in the warehouse is about 3 months, or  ¼ of a year. Thus, the average number of shoeboxes in the warehouse is given by (1000 shoeboxes/year) x ( ¼ year), or 250 shoeboxes. Key Takeaways Queuing theory is the mathematical study of queuing, or waiting in lines.Queues contain â€Å"customers† such as people, objects, or information. Queues form when there are limited resources for providing a service.Queuing theory can be applied to situations ranging from  waiting in line at the grocery store to waiting for a computer to perform a task. It is often used in software and business applications to determine the best way of using limited resources.Kendall’s notation can be used to specify the parameters of a queuing system.Little’s law is a simple but general expression that can provide a quick estimate of the average number of items in a queue. Sources Beasley, J. E. â€Å"Queuing theory.†Boxma, O. J. â€Å"Stochastic performance modelling.† 2008.Lilja, D. Measuring Computer Performance: A Practitioner’s Guide, 2005.Little, J., and Graves, S. â€Å"Chapter 5: Little’s law.† In Building Intuition: Insights from Basic Operations Management Models and Principles. Springer ScienceBusiness Media, 2008.Mulholland, B. â€Å"Little’s law: How to analyze your processes (with stealth bombers).† Process.st, 2017.

Consumer Behavior [Motivation within marketing process] Essay

Consumer Behavior [Motivation within marketing process] - Essay Example This report is divided into three sections, including literature review, reflection, and discussion/analysis. In the first section (literature review), a total of four consumer behaviour theories such as marginal utility theory, consumer choice theory, perceived risk theory, and diffusion of innovations theory are discussed to gain a deep theoretical understanding of various factors that would influence a consumer’s degree of motivation and thereby purchasing behaviour. In the second section (reflection), one of my recent personal consumption activities will be described in order to analyse the motivational factors that led to the specific consumption process. Here, the way the organisation interacted with me to motivate me to consume the product is emphasised. In the third section (discussion/analysis), the major finding of the study is brought together for providing an analysis of my own consumer behaviour in the light of the issues raised in the literature review. Finally, the conclusion part summarises the key findings of the report. In order to critically evaluate the impact of consumer behaviour theories on motivation within the marketing process, it is vital to acquire a better understanding of the concepts of marketing and motivation. The process of marketing is directed at the identification, anticipation, and satisfaction of customer requirements with the ultimate objective of profit maximisation. According to Philip Kotler, â€Å"marketing is that social process by which individuals and groups obtain what they need and want through creating offerings and freely exchanging products and services of value with others† (as cited in Singla, 2011, p.101). The marketing concept is the philosophy that requires companies to focus on the needs of their customers so as to promote decision making and to meet customer satisfaction better than competitors. As Shimasaki (2009, pp. 98-99) describes from the time

Religion and Theology Essay Example | Topics and Well Written Essays - 2000 words

Religion and Theology - Essay Example From this research it is clear that  one of the important aspects is to create a rapport with the needy person to enable them to open up. A pastoral care worker can only provide a remedy, if they have a perfect understanding of the problems or the pain the needy person is experiencing. A pastoral care provider must seek to know vital information regarding the problem the needy person is facing. This according to my inductors can only be achieved if the pastoral care worker creates an appropriate environment in which the needy person will cooperate exemplary. The success of pastoral care will rest hugely on the skills of the pastoral worker’s skills in manoeuvring different situations.This study outlines that  pastoral care is therefore as structured process, which requires the pastoral workers to employ their skills and Christian teachings to resolve the different situations. From my field experience, tutoring is an imperative stage, which provides the workers with initial skills to help them navigate some of the problems that may hinder the success of this form of counselling or care. Irrespective of the setting of the pastoral care, induction into the imperative aspects of practise is essential for any new pastoral worker.  For one to receive pastoral care, he/she must come to the church and register. This is the system the church has established to enable proper management of the program. In addition, the church leadership may also identify people who they feel need pastoral care despite not being members of the church.

Social Class Essay Example for Free

Social Class Essay Would it be wiser to develop a new brand, or can it successfully market the same product to the under and over 50s? 5. In view of the anticipated growth of the 50-plus market should Oil of Olay consider a new strategy for its face cream? Would it be wiser to develop a new brand, or can it successfully market the same product to the under and over 50s? 6. What kind of subcultural (ethnic, race, age and sex) segmentation would best assist the marketer with the following products and services? 1. A digital microphone 2. An MP3 player 3. Jeans 4. Snap-chill meals 5. A new alcoholic lemonade 6. A tourist package to Vietnam and Pakistan . A personal telephone number 1. Some food goods, such as cans of pork, those people who are Moslem do not have pork and sometimes they substitute beef for pork. In this scenario, it has been of importance that manufacturers cannot produce the food associated with pork if they tend to target Moslem market. Otherwise, the customer of Moslem would be excluded. Take a Nutrilite as an example, it is a kind of nutritious medicine, like Blackmores in Au, it got different kinds of medicine, one of products is called protein powder that the people always going to gym should take after they finish the training. Also, for elders linked to the age subculture, the company produces each product in terms of some illness that is potential to them when they get older. Meanwhile, the likelihood of illness will decline if these aged people insist taking it. 2. Baby boomers: Those people are reaching the retirement age and they could be the largest customers using TV because they would spend lots of time at home. The company can give customers from the age of babyboomer some discounts once they plan to sign the contrast with Foxtel company duo to these people have potential to become the lasting customers. Generation X: consist of people born from 1965 to 1979, this group of people has accepted the higher education already and some of them work in a big company, earning higher salaries. Those people are in no rush to marry. For advertising companies, they should stress the advantage (eg. Credibility and naturalness of ingredients) of Paying TV services. The advertising company should attract these people since they like music, fashions and language. Generation Y: consist of people born between 1980 and 1994. Those people are more open to change and looking for next gadgets. These people use the internet almost everyday and the advertising company can have a try that linking the tv service to the internet. Also, this group of people is characterized by the informal groups, like friends and they prefer to imitate what friends do. 3. The business can give the elders discount if they purchase the necessity, such as walking stick. Particularly, if some elders make a consumed decision, such as buy a new car, then the government should cut the tax rate that elders should pay by the mortgage or cash. The allowance given to elderly depends on what sort of decisions they make and the income earn. 4 I think the oil of ulan should develop a new product since customers between 50 and over-50s have different skin. For instance, the skin with elders has more wrinkles and the company should design specific products for the people who are more than 50. The company can not market the same product but can develop a new brand that is a branch of Oil of Ulan. As a result, the two brands can segment different groups of customers and position the products. . A digital microphone and an mp3 player) age. As young and older people have different aspects regarding the interests. The young people prefer to go to ktv and even stay here overnight and a digital microphone is useful for those people as they utilize it to practice singing. While for olders, they are less likely to use this modern devices and the one they like maybe reading newspaper, opera, or walking in the park etc. Jeans) age and sex. Some famous brands of jeans, such as levi’s and lee are welcomed by young people. Particularly, the series of CLOT of Edison chen is so fancy that a large number of young fans like it. Also, some females like jeans as it could reveal the beautiful body when they wearing it. Snap-chill meals and a alcoholic lemonade) ethnic. Some people from Mexico like chill very much and that’s why in Mexico, there is a kind of strong chill called ‘ devil chill’. However, some people from southern areas in China, those people like sweet food while people in north-west like chill and beer since the weather is very cold and they eating chill to warm themselves. For a lemonade, some people like drinking beer. A tourist package to Vietnam and Pakistan) age. Nowadays, both young and older people like travelling. However, young people have more curious about the outside world and they prefer to have a look by travelling. A personal phone number) ethnical . Some religious people do not like some numbers like 4, they think 4 sounds like ‘death’ in Chinese. Consequently, when they choose the cell number , they prefer to choose the lucky number even though they spending much more money to purchase the number.

Essay --

Personal Strengths and Weaknesses Everyone has strengths and weaknesses but being a rather younger one, it’s hard to deal with your weaknesses. It’s not until you grow up and realize that you have to use your strengths to overcome your weaknesses. The ability to win others in my point of view – like many others – is invaluable. I believe I would be more successful in everyday situations, like asking for a raise or ironing out a difference with a neighbor, only if I concentrate more on myself. Like every other person on this planet, I consider myself being composed of certain strengths and weaknesses. I will start off by discussing my flaws and the personal deficiencies I hold within. Poor communication skills in English Realizing the fact that English is my second language that’s why not having essential command on this language is one of my weaknesses that are really big stumbling blocks for me. Basically I am an Asian. Every now and then, due to my poor communication skills in English I feel uncomfortable to tell people how to do things. I do have problem in school or workplace b...

Overview of the life of Andrew Carnegie Essay

Andrew Carnegie and the Rise of Big BusinessHarold C. Livesay said in his book, Andrew Carnegie and the Rise of Big Business, that Carnegie â€Å"was a collection of paradoxes, this man of American steel-violent and peace-loving, ruthless and loyal, greedy and generous, boastful and diffident, vain and doubting, brash and shy†. Andrew Carnegie was a quite normal in his younger years. He was born on November 25, 1835, and grew up in the rural town of Dunfermline, which was located in Scotland. His family was like many other families in Dunfermline. Dunfermline’s livelihood depended on the hand weaving of linen,† (pg 10) so when everything shifted to machine production, nearly 5,500 people lost their jobs. This was known as the Industrial Revolution. The Carnegies were one of those families that were affected by the rise of machines, which replaced workers. His mom tried to help the family income by cobbling and selling her work in a small store she opened in front of their house, but nothing worked out, despite efforts to find a steady job by his dad and mom. People started sailing to America because their â€Å"old home no longer promised anything at all.† (pg 14)Andrew Carnegie got his first job when he got to America. He worked for a local textile mill as a bobbin boy getting paid $1.20 a week. The owner of this mill helped out because he gave preferential treatment to people from Scotland, which was his homeland. During this time, his father â€Å"failed as a man of the world† and â€Å"gave up in defeat and drifted back to the loom.† (pg 21) His next job was for the O’Reilly Telegraph Company. He started off as a mere messenger boy but in time became a full-time telegrapher. He was later advanced to be the superintendent of Pennsylvania’s railroad system. All of these jobs and entrepreneurs suppo rt Livesay’s conclusion that Carnegie was ruthless in his career advances. Andrew Carnegie was constantly trying to make money. Switching from job to job to get more money and later in his life he got into investments. He started off when Tom Scott â€Å"persuaded him to buy ten shares of Adams Express Company stock for $600, lending him the money.† (pg 53) He continued to make investments in different companies, which most of the time resulted in profit. Early in his investment stage, he would borrow money from different people, and turn around and invest all of it. One might agree that this method of investing shows that Carnegie was greedy, thus supporting  Livesay’s remark. Carnegie was one of the major investors in many of the new businesses and franchises, such as the Pennsylvania oil wells. â€Å"Carnegie’s last financial adventure came in July 1872† (pg 79) when he took $6 million in bonds to a bank in Germany and tried to get them to buy the bonds. Carnegie then altered his vigor to a different field, the construction of what was to be known as Carnegie Steel. Created in November 1872, Carnegie Steel manufactured steel rails by means of the new Bessemer method. He credited his success to his skill to be a good employer. He treated his workers right, which they returned with excellence in the workplace. This supports Livesay’s remark that Carnegie was loyal. Carnegie strived to make business deals and other alliances in the steel industry in interest of making his business grow. In 1872, a new furnace was constructed. â€Å"Called the ‘Lucy’ after Tom Carnegie’s wife† (pg 100), which was pushed hard to increase production. This is when Carnegie observed that machine work cost a lot less than manual labor, and he acted accordingly. Later, Carnegie scraped his â€Å"Bessemer converters for more modern equipment, despite the hundreds of thousands of dollars invested in them.† (pg 129) By 1900, Carnegie Steel Company was making one fourth of all the steel in the US. Carnegie had been waiting a long time to sell, and finally, U.S. Steel Corporation was created to buy him out. In 1901 he sold out for $250 million in bonds and retired from business. In the years that followed, be donated the rest of his wealth to charities such as schools, libraries, churches, and other educational and recreational places. Carnegie had given 90% of his total riches to philanthropic groups by the time he â€Å"died peacefully in his sleep on August 11, 1919.† (pg 208) This shows Carnegie’s generosity of which Livesay mentioned. It is stated by Harold C. Livesay’s in his book, Andrew Carnegie and the Rise of Big Business, that Andrew Carnegie â€Å"was a collection of paradoxes, this man of American steel-violent and peace-loving, ruthless and loyal, greedy and generous, boastful and diffident, vain and doubting, brash and shy†. All of these things are true about Andrew Carnegie. From his hard life he and his family had in Scotland to his rise in life, from his low paying job at the textile factory to selling out his own company for $250 million, and  finally the depression that began in 1893 which he responded to with a â€Å"policy of aggressive price cutting† and â€Å"aggressive attention to cost.† (pg 163) Source: Andrew Carnegie and the Rise of Big Business