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Definition of 'Groupon'

Groupon is a global e-commerce marketplace for local businesses. It was founded in 2008 by Andrew Mason, Eric Lefkofsky, and Brad Keywell. The company is headquartered in Chicago, Illinois.

Groupon allows consumers to purchase goods and services from local businesses at a discounted price. The company offers a variety of deals, including discounts on food, travel, entertainment, and other services.

Groupon works by allowing businesses to create a deal on their website. The deal is then promoted to Groupon's users through email, social media, and other channels. If a certain number of people purchase the deal, the business is obligated to provide the goods or services at the discounted price.

Groupon has been a successful company, and it has grown rapidly since its inception. In 2011, the company went public and was valued at over $12 billion. However, the company has also faced some challenges. In recent years, Groupon has been criticized for its high marketing costs and for its lack of profitability.

Despite these challenges, Groupon remains a major player in the e-commerce market. The company continues to grow its business, and it is expanding into new markets.

Groupon has a number of advantages over traditional retailers. First, the company offers a wide variety of deals on a variety of products and services. This allows consumers to find great deals on things they are already interested in. Second, Groupon's deals are often very heavily discounted. This can save consumers a significant amount of money. Third, Groupon's deals are often only available for a limited time. This creates a sense of urgency and encourages consumers to purchase the deal before it expires.

Groupon also has a number of disadvantages. First, the company's deals are often not very good. This is because businesses are often willing to offer deep discounts in order to attract new customers. Second, Groupon's deals are often not very convenient. This is because businesses may not be located near the consumer. Third, Groupon's deals are often not very reliable. This is because businesses may not be able to fulfill the deal due to unforeseen circumstances.

Overall, Groupon is a valuable resource for consumers who are looking for great deals on local goods and services. However, it is important to be aware of the company's advantages and disadvantages before using its services.

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