2. Groupon’s business strategy harnesses what it calls “collective buying power.” What facets of the marketing environment have enabled a business like Groupon to emerge and become successful?

Want a deep discount on a deep-dish pizza ... a day at a health spa ... Major League Baseball tickets? If you like a bargain, e-coupon site Groupon may be for you. Or suppose you’re opening a gym: you need customers, and you need them fast. You can advertise your business and hope to reach people with the desire and the cash to join. Or, using the power of social commerce offered by a site like Groupon, you gain exposure for your new business and attract interested shoppers through a discounted membership deal.
Founded in Chicago, Groupon uses the Internet to help business owners connect with prospective customers. The rules are simple: Groupon works with the business to create a deal offering a discount on goods or services. Owners set the terms of the deal: the minimum and maximum number of takers and the discount amount (usually around 50 percent but sometimes more). Groupon features the deal for one day. If a prescribed number of shoppers—typically 50—take the deal, it’s a go. If not, the deal expires and no money changes hands. Meanwhile, Groupon makes money by pocketing a finder’s fee on successful deals.