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Internal Environmental Analysis Of Groupon: The Value Chain Management

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Internal Environmental Analysis Of Groupon: The Value Chain Management
- Internal Environmental Analysis ► The Value Chain
Groupon value chain management is an extensive process that begins with the negotiations with buyers to delivery of purchased vouchers to customers.
Introduction of the company listed services is very simple. Leads are created by the marketing department and passed to the relevant salesperson for the city, which is located seller potential. When agreement is reached with the seller, a salesperson works directly with the business to put the final touches on the terms of underwriting.
This close communication between the vendor, sales rep and customer creates a close weave community and creates intrinsic value for consumers. and if a customer facing a problem in redemption, these employees
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In the first quarter of 2011, compared with the same quarter of 2010, Unfortunately, this growth in revenues has not equated to profitability. The company has expanded at such a rapid rate through hiring of additional employees, marketing costs and infrastructure that Groupon lost $146.5 million in the first quarter of 2011. Part of this decrease is the massive growth of their subscriber base, however it also shows that fewer people are actually buying the daily deals. These decreases have not hurt Groupon’s ability to grow yet since their cash flow is so strong and allows the company to fund current operations.
The physical resources owned by Groupon consist primarily of their sales force, which is housed in two main locations in Chicago. Their dramatic growth has resulted in large investments in physical space and technology, for each employee needs their own computer.
The human portion of this analysis is focused on two groups within the firm, the sales team and the executives. Both of these clusters are filled with top performers in their class. Additionally, Andrew Mason, CEO of Groupon and Eric Lefkofsky, Chairman and co-Founder, both have experience in growing technology companies to
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New programs and departments have appeared on the fly over the past two years as different needs developed. An additional having a young workforce is their comfort with technology and social media. Much of the business becomes second nature to the employees, who are encouraged to share their ideas with management to improve the operations when applicable.
► Financial Analysis
Groupon financial success is dependent upon revenue earned from sales of daily deal “Groupons.” An increase in the number of Groupon purchased by customers will show a direct benefit to topline performance. While Groupon has grown extremely rapidly since it was founded in 2008, the number of competitors has also grown very quickly. The majority of competitors are smaller, regional daily deal services, but Living Social, Amazon Local, and other large daily deal competitors pose a significant threat to Groupon’s market share over the mid to long run.
Because of Groupon’s relatively short history, a financial analysis poses some unique challenges. The Directly comparing revenue changes from 2010 to 2011 will tell us a little about the true financial health of the

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