After working on the NetTools Assignment and presentation for Groupon, I wanted to research their competition overseas. I found that the company Snapdeal is now their leading competitor in India.
What’s their business model?
Snapdeal offers discounts up to 90% off in cities of India on Dining, Travel, Entertainment, Movies, Spa, Healthcare services and much more. Their focus is on India but they are planning to expand to the USA.
How do they do it?
Step 1: Subscription- Subscribe with them online to get daily deal alerts in your email and mobile device.
Step 2: To buy any deal, click on 'Buy' and make a payment using various payment methods: credit card, debit card, online banking, cash card and more.
Step 3: Deal confirmation- Receive your deal vouchers on SMS and Email.
Step 4: Redeem your deal- Show your voucher at the merchant location and redeem the deal. Its that simple!
Value and funding due to eBusiness:
Group buying portal Snapdeal.com has raised $40 million in series B funding, led by Bessemer Venture Partners, along with existing investors Nexus Venture Partners and Indo-US Venture Partners. The investment comes barely six months after it has announced a $12 million series A round in January this year from Nexus and Indo-US Venture Partners.
Snapdeal has been rapidly expanding its group buying business and currently has a member base of over eight million. Besides offering deals for services like restaurants and spas, the company has also started offering various products such as luxury goods (sunglasses, watches) and gadgets (mobile phones, storage devices). Snapdeal's co-founder and CEO Kunal Bahl has told VCCircle that its products business has started to scale up really well, this is an area that Groupon is just getting into. For instance, the company sold 500 branded wallets within 45 minutes only a few weeks ago and also sold over 2,500 branded sunglasses in a single deal in one day.
For further information about Snapdeal or Groupon please click the links below:
http://www.penn-olson.com/2011/05/20/india-snapdeal-surpasses-livingsocial-threatens-groupon/
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