Introduction
EBay logo; figure 1: source (Walia & Zahedi, 2013)
So, what next for Groupon Company? It is alleged that eBay is on the final move to buying out the renowned Groupon Company. The company is facing some financial mishaps; lack of continued progress in terms of expansion across the globe is affecting the profits margins for the business. The company is believed to be performing well across the US, but its performance in terms of expansion into the global market is relatively low. This is due to its inferiority.
Who is behind the deal? The CEO of eBay is behind the successful deal striking of a company buyout. The CEO offered Groupon management a total of $1.5 billion as the total compensation for the company stake. The reason behind this buyout is believed to be vested on the interest of the eBay management on reducing the market gap. Increased competition from amazon firm is believed to be the reason why eBay wants to reduce the market gap from widening too much. The deal seems to be maturing positively due to the constant positive feedback.
The next big thing for eBay; the company is believed to have achieved one of its key strategies of reducing the market gap that was being widened constantly by the new market entrants. The company’s organization is strategizing on expanding towards the solid grounds that Groupon Company dominated. This works well in injecting more and more revenue into the business. This is one of the revolutionary strategies of reducing the market gap and increasing dominance.
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References;
Walia, N., & Zahedi, F. (2013). Success Strategies and Web Elements in Online Marketplaces: A Moderated-Mediation Analysis of Seller Types on eBay. IEEE Transactions on Engineering Management, 60(4), 763-776.
