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    What's the Deal with LivingSocial

    Norton, Michael I. ; Wathieu, Luc ; Sigman, Betsy Page ; Bertini, Marco

    English , Spanish

    • Reference: HBS-512065-E

    • Year: Event Year Start:2011

    • Number of pages: 18

    • Geographic Setting: Geographic Setting:United States

    • Publication Date: Feb 24, 2012

    • Fecha de edición: Aug 26, 2013

    • Source: HBSP (USA)

    • Type of Document: Case

    • Industry Setting: Industry Setting:Online information services;Online retail;Retail trade;Web services;Information services;E-commerce

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    Description

    Tim O'Shaughnessy, the 29-year-old CEO of LivingSocial, is growing a revolutionary worldwide business of "daily deals"-in which retailers offer a heavily-discounted product or service available for purchase for brief (often 24-hour) windows. The case explores the complicated sharing of risks and rewards between LivingSocial, participating retailers, and customers, focusing on the return on investment in both the short- and longer-term for LivingSocial's retail partners. In addition, given the rapid growth of the daily deals space and the accompanying proliferation of competitors including Groupon and Amazon.com, the case focuses on the need for constant innovation in product offerings to maintain differentiation from copycats.

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    Keywords

    Advertising Asset management Brand management Customer service Inventory Market research Marketing Sales