Business Profile: The Evolution of Groupon
Groupon’s original product offerings of deals from local companies got it off to a great start, several years ago. The company grew quickly and expanded into Canada and the UK. However investors thought that this revenue model was too limited and the company began to have stagnant earnings. Good leadership at the company recognized that fact and new offerings were developed that have brought good growth and earnings. The company is set for good long term growth and should be considered a good buy for investors. Here is a bit of information about Groupon’s expansion and what that means for investors.
Groupon now has extensive, category-based listings for businesses listed by town. For example, if you are looking for for a cell phone, to have your car repaired or you would like to find a spa or even eyelash extensions, you can find results that are specific to your own city. When big box stores and online retailers seem to be taking over the business world, Groupon’s local results help small businesses survive. It connects buyers with local businesses, right at the time they are looking for their goods and services. These local directories are taking a chunk out of Google’s monopoly on local directories.
Groupon is now in the travel business. No matter where you are going, Groupon has a way to save you money. They offer package deals, tours and discounts on activities that people often participate in while traveling.
The goods section of Groupon has individual items for purchase, much like shopping at Amazon. Though Groupon may not be the first place people think of for direct shopping, it is available. As consumers become more familiar with using Groupon and saving, this division of the company will rapidly grow and profit.
One of the most exciting new sections of the Groupon website is the Coupon section. On many online retailer shopping carts, you often see “Coupon Code” right before checkout. Groupon now has coupon codes for tens of thousands of online retailers that give either a percentage off or discounts such as free shipping. The automation process built into the programming assures that the coupon codes are always valid and up to date. Wise consumers should check Groupon Coupons before making online purchases, for they could save tremendous amounts.
These new offerings are evident in the earnings. Last year’s revenue was 3.1 billion dollars and estimates predict 25% income increase over the next 5 years. Analysts recommend that you buy this stock and hold onto it, for it is going to have stock price increases that are sustained over the long term.