Swot Groupon

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SWOT ANALYSIS GROUPON|
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Gracia Marhaeni [ 2IBLF1 ] GMK 01-11-2012 |

Summary

The first page of the report will provide an introduction. The introduction briefly inform the reason why I wrote this report. This report has been made due to the fact that I would like to inform other vendors about the underline problem of Groupon and what the solution could be for Groupon to take its leadership back in this industry. Furthermore I formulated the question that I wanted to answer in this report: What can or should Groupon do to develop their strategy to maintain competing in the Electronic Commerce industry?

The second page provide a description of the company. It address the following: Groupon was founded by Andrew Mason in the year 2008. It deals business in Electronic commerce industry. The company employs over 7000 people and it host more than 900 deals every day with 70 million subscribers in 46 countries. Groupon’s mission is simple: to offer stuff we want to do, see, buy and eat at an amazingprice with “no BS.” The vision is to help lighten the stress that comes with having too many choices by offering city-dwellers one really cool new thing a day to try. Keeping with the youthful and happy nature of its brand, Groupon maintains a simple philosophy of treating its customers the way they like to be treated. This page also provide the sales status of the company in 2011 which was 645 million dollar. It also describe the company core competencies, which are Hyper Local Marketing, E-commerce, and social networking. Lastly it exhibit the business model of the company.

On the fourth page it indentify Groupon current problem. Groupon faces a quantitative and qualitative problem in its market. Currently more competitors arising, due to this sales and profit will decreasing.

The following page I started to analyze the External analysis using the Organizational Environmental model and the porters five forces model.

In the Internal analysis it briefly explain, about the company inbound logistics, which are quite simple. Groupon use an incentive program which supports the Value Chain Management(VCM) for all employees.

The seventh page exhibit the SWOT matrix of the company. Which represent Groupon Strength; - largest subscriber base in industry, - largest distribution network, - first mover advantage. Weakness; - continuoius bad press an negative events,. Opportunitie; - creativity in marketing, pending cash inflow from IPO. Threat; - potential legal hurdles to vouchers, - consumer overload, -consumer apathy.

On page eight the a recommendation is given. Groupon need to prove that the company’s marketing model is profitable enough to maintain its suscces. It is suggested to do that through mobile technology.

The last pages consist of a bibliography showing all the sources I have used and a appendix to exhibit the Organizational Environmental model, porters 5 forces, organizational chart and the market share graph.

It is advised to continue to the next page instead of reading only this one, as the rest of the report is also definitely worth reading. I wish you a pleasant reading experience!

Table of Content

Introduction……………………………………………………………………………………………...………....4 Current Situation……………………………………………………………………………………...………....5
What is Groupon .......................................................................................5
Beginnin of Groupon ..................................................................................5 The company’s strategy..............................................................................5

The organizational structure.......................................................................5
Sales Status of Groupon in 2011.................................................................5
Core competence........................................................................................6
Market...
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