WWYD Groupon Growing from 30 Cities in December 2008 to 550

WWYD Groupon Growing from 30 cities in December 2008 to 550 today, Groupon got to $1 billion in sales faster than any other company. Groupon sends a daily email to its 35 million subscribers offering a discount to a restaurant, museum, store, or service provider in their city. This "coupon" becomes a "groupon" because the company offering the discount specifies how many people (i.e., a group) must buy before the deal "tips." For example, a local restaurant may require 100 people to buy. If only 90 do, then no one gets the discount. Daily deals go viral as those who buy send the discount to others who might be interested. When the deal tips, the company and Groupon split the revenue. Why would companies sign up, especially since half of the money goes to Groupon? Nearly all of Groupon's clients are local companies, which have few cost effective ways of advertising. Radio, newspapers, and online advertising all require upfront payment (whether they work or not) . By contrast, local companies pay Groupon only after the daily deal attracts enough customers to be successful. Because there are few barriers to entry and the basic Web platform is easy to copy, Groupon's business has been copied in 50 countries. China alone has 1,000 Groupon-type businesses. So, while Groupon has grown to $1 billion in sales faster than any other company, competitors threaten to take much of that business, especially in international markets.
While the Web side of Groupon business works in most places, it doesn't work everywhere. Throughout much of the world, online credit cards facilitate quick, easy, and trustworthy payment. In India, however, Groupon must use cash-on delivery. In other ways, however, Groupon is balancing consistency with local adaptation. Groupon's business model suggests that the company could find itself locked out of key international markets if it doesn't move quickly to establish itself as a multinational company. Groupon began buying market leaders that it identified in 50 different countries-i.e, entrepreneurs to work with that were excellent operators and also understood the local culture. Groupon first bought a company in Germany and then repeated this acquisition strategy in Chile, Russia, Japan, China, and other locations. One year after deciding to go global, Groupon is in 42 different countries.
While Groupon has local managers to run its businesses in 42 different countries, it brings all of them to Chicago to learn how to run their offices the way that it's done in the U.S. Then, it makes sure that those managers stay current with its client companies by using management software to ensure that its sales force follows up to address potential issues after every daily deal is completed. Refer to WWYD Groupon. The companies that Groupon purchased in Japan, Chile, Russia, Germany, and China became _____ of Groupon

A) strategic partners
B) wholly owned affiliates
C) licensees
D) franchises
E) outposts