Assignment 13 : Groupon

Groupon’s Business Model: Social and Local

1) How does Groupon take advantage of social networking and location technology?

Social Technology

§  Track record - selling goods and services on the INTERNET is increasingly based on social networking – friends recommending friends.

§  Companies targeting individual and their friends who are members of social networking communities such as Facebook and Twitter. Advertise their products and services through Google.

§  Personal Follow up – can follow-up with newsletters, special offer and news releases t the company

§  Best foot forward strategy – An opportunity to demonstrate stellar customer service. Can win repeat customer this way.

Location Technology

§  As Groupon armed with detailed knowledge of customers locations target special offer of location-based goods and services.

§  Information for the selling of goods or discount of coupons can be access by customer at any time and any ware using mobile apps.

§  The business earns revenue by asking people to recruit their friends and acquaintances to sign up for discount coupons to create a “critical mass” of potential customers for a local product or services.

2) Do you think the business model is viable? Why or why not?

In my opinion the business model is viable based on the following:

§  Inexpensive deal.

§  Ability to get more profit.

§  Currently social connectivity is proven as a platform to selling goods and services on the internet.

§  Groupon serves 500 markets in 44 countries.

§  Groupon also need to strategize the marketing and business in order to maintain their profits.

§  Groupon also need to maintain and increase competitive advantage for their products and service.

Albassami's Job Is Not Feasible Without IT

1) What systems are described here? What valuable information do they provide?

Robust computerized system and Information system.  Both systems have replication between the servers at headquarters and the client’s branches. Interaction between both parties allows the data aggregate to create the most update database version. The most recent version of the client list, new shipping contracts and truck’s availability will be shared during the transmission message. Thus, the customer is allowed to deal with any branches at any time. Furthermore, the recipient branch will create a receipt entry on the system upon arrival of the truck and then a Short Messaging Service communication (SMS)  is create and sent to the customer, who will then go to the destination branch to receive the car.

2)what value did the IT/IS investment added to Albassami?

Information Technology/Information System investment help Albassami to conduct all the business processes. The shipping information system will trigger the transmitting of the information from all the branches to the HQ and then the information will be shared and sent back to all branches. Management team will then extracted the knowledge from the central database and enabled them to make sound investment and operational decisions. Therefore, the business is able to be maintained its success and leadership in the Kingdom.

3.   How did implementing the Shipping Information System address the business needs and information  requirements of Albassami?

Shipping Information System which includes information about the output of the vehicle’s tracking information that allowed a better audit on all drivers’ behavior.  Moreover, the system also provides standard reports  to top management and head sectors about all the productivity branches, more accuracy to identify the need for different regions and thus proper budget allocation. On the other hand, linking the data of vehicle maintenance centers with the transportation services helps to improve company performance and customer service. Lastly, the Shipping Information System used at Albassami also maintains all the sender information such as the sent car, the truck number, the sender and receiving branches, and it also send an SMS to the client acknowledging the arrival of the car. In a short word, Shipping Information System is essence to all the company, the cooperation and interaction between employees is needed whenever conduct this system.