Janet Cookson, Eva Zaman, Faiza Ejaz, Grace Odom, & Jonathan Bryson

Commercial

TV Commercial

2007 – Started as ThePoint.com

2008 – Founded Groupon

2010 – Named the Fastest Growing Company

2011 – Still at a net loss

2013 – Fired CEO

Background Information

Sector◦Technology

Industry◦Internet Information Provider

Segment of Focus◦Coupon Deals

Sector, Industry, and Segment

Business Model Offers Groupon in each market it serves Works as an assurance contract Company earns approximately 50% of what

customer pay for a coupon Consumers interested in buying products are

entertained through e-mail Using social networking site to promote ideas

Groupon Revenue 2012

Groupon Deals

Competitors of Groupon

500+ other companies

External Environment General Environment Competitive Environment

General Environment Demographic

◦ Age ◦ Gender◦ Material status◦ Employment

Sociocultural

◦ Couponing

Political/Legal◦ Legal proceedings/ regulations are moderate

General Environment Technological

◦Mobile media Economic

◦Economic Recession Global

◦Rapidly expanding

Five-Forces Model of Industry Competition

Threat of New Entrants: High ◦ Easy to start business

  Buyer Bargaining Power: High ◦ Low switching costs for consumers

Supplier Bargaining Power: Moderate◦ Low switching costs for merchants

Threat of substitute products or services: High◦ Offer great deals

Rivalry: Strong◦ Intense Competition

Value Chain

Strengths◦ Unique Product

Offerings◦ Strong Brand Image◦ Great Customer Service◦ Customer Loyalty

Weaknesses◦ High Debt Burden◦ High Marketing Costs◦ Weak Internal Control

Costs

SWOT Analysis

Opportunities◦ Potential Acquisition

Target◦ Increase Online

Presence◦ E-commerce Site

Threats◦ New Entrants◦ Increased Competition◦ Weak Company

SWOT Analysis

Create loyalty between customers and businesses

Educate business owners

Merge with a larger company

Explore other options to support small businesses

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