groupon
DESCRIPTION
Groupon PESTEL, SWOT analysis,recommendations.TRANSCRIPT
Made by - Edita Macikaitė EBMmfs3-01
What Is Groupon?
• Established: 2008;
• Industry: Advertising and marketing;
• Firstly started: Chicago;
• 500 markets in 44 different countries;
• Working principle: Deal of the day.
Groupon On The Decline?
http://www.nasdaq.com/symbol/grpn/interactive-chart?timeframe=1y
Funding – 1137 mln.$
Groupon Unique Visitors
http://go-digital.net/blog/2012/04/groupon-settling-into-new-steady-state-lower-users-but-more-usage-per-user/
Michael Porter’s Five Forces (1)
• Threat of New Entrants:• Low barriers to entry and easy to copy;
• Low switching costs;
• Low capital required;
• Low regulatory restrictions.
• Threat of Substitutes:• Many substitutes: paper coupons, discount websites, auction websites.
• Competitive Rivalry:• Many players: e-businesses and also regular product service shops.
Competitor Analysis
Michael Porter’s Five Forces (2)
• Bargaining Power of Suppliers:
• Increasing as number of players increases;
• Choose the market themselves.
• Bargaining Power of Consumers:
• Low switching costs;
• Priced-Based deals: No brand loyalty, one time deal seekers and
buyers;
• High demand for better deals.
PESTEL Analysis• Technological:
• Fast developing environment;• E-business flexibility;• Real time;• Dealing via phones/iPads.
• Environmental:• Works in every market.
• Legal:• International e-commerce low.
• Political:• Government stability;• Tax policies.
• Economic:• Recession;• Currency fluctuating;• Developing vs. Developed
countries.
• Social:• Culture differences;• Ageing population.
SWOT Analysis
Strenghts:
Original idea – first mover in the industry;
Largest company in the daily deals market;
Name – recognition internationally (in over 44
countries);
Diversified into new markets;
E-business company let it be more flexible in
strategic.
Weaknesses:
Negative online reviews;
Emails preceived as spam;
No creation of customer loyality;
Deals not profitable for merchants;
Rapid growth into other countries.
Opportunities:
Continue to develop business on apps for phones,
tablets;
Increase deal variety;
Expand domestic areas;
Partner with big companies;
Threats:
One time users;
Lack of deal personalization;
New entrants too the industry;
Huge competition;
Economic slow down.
Groupon Problems
• No customer loyalty;
• Improper marketing/advertising
strategies;
• Improper financial reporting;
• Lack of proper management.
Recommendations• Advise the businesses on how to best structure and operate a deal:• Number of employee's;• Upsell;• Follow up.
Deal management consulting services
• Collect data about customers;• Offer each customer the most relevant deals;• Exclude the businesses existing customers.
Deal customization
• Target the „luxury“ businesses category.Higher value
• Provide a feedback platform;• Identify „best“ businesses and build stronger long-term
relationships.Filtering mechanism
• Apply standardized accounting methods.Accounting
Conclusions
For solving part of these problems Groupon need to implement CRM.
Thank You For Attention!
References:• D.Buchler, J.M. Downey, A.Goldstein, A.Kheyfets, L.Monitz, T.M.Truong. (2012). Groupon:
What a Deal. MBA.
• B.Popper. (2013). Greed is Groupon can anyone save the company from itself? (http://
www.theverge.com/2013/3/13/4079280/greed-is-groupon-can-anyone-save-the-company
-from-itself
)
• The Wall Street Journal. (2011). Groupon’s Terms Not Endearing. Http://
online.wsj.com/article/SB10001424052702304314404576413663290520884.html
• The Wall Street Journal. (2011). Groupon’s Terms Not Endearing. http://
online.wsj.com/article/SB10001424052702304314404576413663290520884.html
• ChiefMarketer.com. (2011). Can Groupon Grow Up?
• T.Slade, O.Hawkins, T.Teng. (2012). Groupon, INC. Grifin consulting group.