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Case study 13: Groupon's Business Model

Groupon is a business that offers subscribers daily deals from local merchants. The catch: a group of people (usually at least 25) has to purchase the discounted coupon (a "Groupon"). If you really want to go to that Italian restaurant in your area with a 50 percent discount coupon, you will need to message your friends to pay for the coupon as well. As soon as the minimum number of coupons is sold, the offer is open to everyone.