Analysis And Innovation Research Of Group Buying Website Business Model

Groupon a typical representative of group buying website founded in November 2008 in Chicago succeeded with a simple and clear business model and created a new business model of group buying website. Since March 2010 Groupon business model has been introduced to China, group buying websites have sprung up there in the cities of the country, and its growth rate is astonishing. As of the end of November 2010, just in 8 months, the number of group buying websites has reached 1664, and the size of the market reached 12 billion.Frenzied web group buying is brought tangible benefits to consumers, but also some negative issues, such as credit risk, consumer traps, decline in the quality of service, homogenization and so on. In the face of the situation of "war of thousands of group buying websites," the author based on the theory of value chain and business model, analyzes the business model of group buying website and gives it innovation in a third party perspective. I hope that through this paper, I give the industry of group buying websites, especially the enterprises in it a number of development proposals, so that our industries of group buying websites can develop rapidly and healthily and ultimately achieve multi-win-win situation of consumers, businesses, group buying websites and industry participants.Firstly, based on the review of business model, business model innovation and innovation paths of it, this paper disucussed the development status of the industry of group buying websites at home and abroad, the constitute of the value chain and the competitive structure of it, then from the elements of business model perspective I analyze the business of group buying websites and point out the problems of business model. Secondly, the text in the fourth chapter proposes spin-off and innovation of the value chain in two ways. Thirdly, based on the "how to reshape the business model" model, from customer value proposition,profit formula,key resources and key processes perspective of business model, I propose innovation of business model. Fourly, analyze of the effectiveness of business model innovation.