This case, What’s the deal with LivingSocial? from hBS case study, is a vehicle to revise basic techniques of advertising and consumer management in nowadays technological context, daily basis online deals.
LivingSocial is a website providing coupons and sales for local people who look for deals. According to the business, LivingSocial is able to provide their customers local and national deals and has now over 70 million members worldwide.
However, even that LivingSocial’s customer base expanded and grown in size, it lacks young population, most of their customer are 35 and above. Moreover, they have increased competition in the local area and facing their strong and main competitor, Groupon, which has a strong bond with the younger generation.
What I suggest LivingSocial can do is to partner with other company and form a strategic alliance. One opportunity is that they can combine with Groupon to get the most share in the market and combine their demographic. This allows expansion in both local and worldwide business, at the same time increase the number of deals and quality of deals for both companies. The other opportunity is that LivingSocial can expand their business to the west since they are basically in the east and missed out the opportunity in the west. This expansion will create more opportunities and a new market for them, and thus, more revenue. But they have to keep in mind that “Youth is fleeting so is your paycheck “. Any marketing they made, they have to kind of targeting the younger generation.