I. IntroductionThe term business model has gained popularity due to "the explosive growth of new businesses spurred by the Internet"1 and is often misused "to glorify all manner of ill-prepared projects."2 Strategy is another "buzzword". mode” often used wrongly. interchangeably with the economic model. There are many differences between the two, but the defining characteristic is that a “business model is independent of competitors and the current state of the market,”3 focusing inward to describe “as a system, how the elements of a business fit together.” .2 Strategy focuses on performance, looks outward at the industry, analyzes current competition, future competition, suppliers and customers, and answers the key question "how will you do better than your competitors?" » 2Analysis of Groupon's business model and strategy will provide insight into how they should focus their efforts to try to bounce back from a recent downturn. Focusing on how they seek internally to restructure their business model rather than externally toward a change in strategy will emphasize the role that both concepts play in creating and sustaining superior performance. II. BackgroundGroupon is a social commerce website connecting buyers and sellers with “deal of the day” coupons via email, apps, and social media. Launched in Chicago in 2008, they quickly expanded to New York, Boston and Washington DC. In 2010, the company served more than 250 markets in 35 countries. First-mover advantage and a simple business model of connecting buyers and sellers while retaining a percentage of the transaction proved successful for Groupon early on, but recent difficulties in maintaining a competitive advantage have led to drastic changes in Groupon's business model..... ... middle of paper ...... it will be the digital storefront where people begin any online shopping journey. »7 These trends show that Groupon is moving away from the original business model of “push” (daily deals sent to consumers) to “pull” (a portal to search for deals)8, and it appears they are about to to attempt an almost impossible feat by entering into direct competition with industry giants Amazon, eBay, Expedia and Google. Why It's Everyone's Business2 Why Business Models Matter3 Difference Between Business Model and Business Strategy4 From Strategy to Business Model and Tactics5 Groupon6 Groupon is still groping for a viable business plan as stocks s 'collapse7 Groupon Tests Commodity Competitor, Groupon Provides8 Groupon Struggles to Find a Winner Strategy