Boston, MA 10/17/2013 (wallstreetpr) – Eric Lefkofsky is the CEO of the online discounts company Groupon Inc (NASDAQ:GRPN). At a brief, the CEO made a startling statement to the effect that he didn’t intend to stay long as a CEO, “Only a few years,” he said. But now his actions and plans seem to betray his speech. He is more of a long term chief executive than ever thought.
Under him, GRPN is seeing a long of shift in business model to what can be seen as drive to stabilize long term growth. The company has lately tapped stellar engineering professionals to grow its engineering department. This move tells a lot about the direction that Lefkofsky wants to steer the e-commerce deals and offers company.
The notable model shift that is already resonating well with investors is the plan to convert the company’s approach from “push” to “pull”. In this regard, GRPN is seeking to draw more customers and deal seekers to its own online platform (website) instead of just delivering the deals to their e-mail inbox.
This approach is sustainable and also extremely effective and could bolster the company’s fortunes. Analysts say. And as GRPN seeks to rope in even more global customers seeking out discounts and offer deals on a wide range of items, the “pull” could be an effective model to get people into knowing what’s up for grabs easily.
In the “pull” system, it will be easy for people to get the deals when browsing the search engines. However, the downside to “pull” method is that a lot of customers may miss out of several deals. Considering that some deal delivery require persuasive tone which can be achieved easily and made effective by emailing, it will be difficult for some customers to search through all the deals in the website. In essence, delivering deals to inbox saves potential buyers of time spent in searching for deals.
Now holding onto a market value of $7.62 billion as of Wednesday, October 16, GRPN gained 2.37% on its shares to close north at $11.44 per share on Wednesday.
