Because Group relies on its merchants to provide its consumers with products or services, they must continue to grow their merchant relationships to provide their customers with new products. Merchants provide the foundation of Group's business, so without merchants, Group wouldn't have anything to offer to its consumers and therefore not be able to generate revenue - the graph shows the importance of Group's relationships with its merchant.
Since Group's relies on TTS merchants to generate revenues, we can conclude from the graph that the more merchant relationships they had, the more revenue they will generate What attracts merchants to Group? Merchants do not have to pay an upfront fee for Group's services, so there is virtually no risk. This is attractive for small business owners since they may not have the means to pay for advertising, knowing they only have to pay Group once they start making money themselves.Also, Group customers typically spend more than he value of the deal and 91% return or plan to return to the business, so merchants are essentially guaranteed more clients and higher retention rates. Group's merchant satisfaction rating is about 79% - 15 percent higher than the average business-to-business (BIB) merchant satisfaction score (all of these factors make Group the most attractive choice for the purpose of risk free marketing) Marketing Strategy: - "Competing in overcrowded industries is no way to sustain high performance.
The eel opportunity is to create blue oceans of uncontested market space. " (Citation: W. Chain Kim & Renee Membrane (October 2004). Blue Ocean Strategy. Harvard Business Review. P 76-84) - Blue Ocean Strategy characteristics: 1) opportunity for rapid and profitable growth 2) creates value for buyers and company 3) technology innovation is not at the firm's core - This strategy is what Group has built its foundation.
Group utilized this unknown market space by reinventing the coupon industry, creating a new one from n already existing one.By doing so, they were able to create demand for their products and the firm's growth was rapid and without competitive threats - In addition, Group has created value for not only the buyers that are getting great deals, but also for the merchants that are able to attract new customers to their business Probably won't need this EXTRA INFO - - To help find a "blue ocean," businesses must consider the "four actions framework. " Similar to Porter's Five Forces theory, the Four Actions framework is used to construct buyer value elements in crafting a new value curve.To break the trade- off between differentiation and low cost and to create a new value curve, the framework poses 4 key questions: 1) Raise: What factors should be raised well above the standard? 2) Eliminate: Which factors that the industry has long competed should be eliminated? 3) Reduce: Which factors should be reduced well below the industry standard? 4) Create: which factors should be created that the industry never offered?
