working. Besides, customers can subscribe to the deal offers through many media suchas e-mail, twitter, or else and that is for free and sometimes it could be personalizeddepending on each customer. So it is very possible to attract new customers speciallythose who are looking for great value for a product or service. And if the quality of the product or service could pay off the value, most likely the new customers will becomerepeaters. But in the other side, this might not work with small businesses which cannothandle a sudden rise of customers. They might end up with disappointing customers andlost them. Besides that, if the customers who shop in the shops or restaurant only spendmoney as much as the deals offer, most likely the producers are not making profit because 50 percent of every sold coupon is gone to Groupon as commission. Accordingto the media, it is said that Groupon’s business model is easy to imitate, and that is whythere are a lot more competitors came up. There is no uniqueness that Groupon offerscompared to the competitors. One of the competitors which is said to be a great deal isLivingSocial.
Business‘ Growth Factors
GREE’s growth as a social networking service might not be as rapid as itscompetitor, Mixi, which is said to be the leading social networking service in Japan. ButGREE stated in its press release on August 4th, 2011 that its user base has surpassed130 million worldwide, up from 100 million users last April 2011. AndGREE was alsoranked by Deloitte Touche Tohmatsu Ltd. as Japan’s fastest-growing tech company in2009 and 2010
The factors which led its growth are as follow;•
GREE has been continuing to expand its market globally by creating strategicalliances with global partners. In April 2011, GREE acquired OpenFeint, amobile gaming platform for iPhone and Android. Besides, it has also madealliances with Tencent in China and mig33 in Southeast Asia. Thus, its userscould increase more. •
GREE generates income not only from advertisements or premium account’sfee, but also from its social game. The games can be played freely, but if the players want advance features in the games, they will need to buy credits, etc.And it is said that this business model is a success. How about Etsy? What constructs Etsy’s growth factors?