Groupon Goes Public: Communication Strategy and Challenges

Author
Frank, Jun
Region
North America
Topic
Strategy & General Management
Accounting & Finance
Length
20 pages
Keywords
E-Commerce
IPO
scrutiny
IPO process
Business Model
financial viability
accounting practics
Student Price
$4.00
Target Audience
Graduate Students
Undergraduate Students

Three-year old daily deals company Groupon filed for an IPO on June 2, 2011 seeking a valuation of $20 billion. However, the offbeat, local e-commerce firm has come under intense media and investor scrutiny during the IPO process over its business model, financial viability, and accounting practices. After postponing its IPO amidst market uncertainty, Groupon must work to restore credibility with the investor community.

Learning Outcomes
  • Familiarize students with the challenges a firm faces in its communication with investors, especially at a sensitive time;
  • Stimulate discussion on the role of corporate culture in corporate communication and investor relations;
  • Encourage students to think about having a corporate communication strategy that aligns a firm’s communication with its corporate objectives while maintaining its corporate culture and developing singularity in its voice.