Swot Groupon

Groupon is a deal based business that brings customers discounted deals from the businesses. As a result of massive success and the growing competition, the business is faced with the option of either selling to Google or developing an effective marketing strategy for continuing its own. In the due context, the underlying report proposes a marketing plan for successfully dealing with the market challenges (Chatterjee, O”Keeffe, and Streiff, 2012).

Andrew Mason, Founder & CEO of Groupon, had a big idea, but was not aware how massive it could grow. Before Groupon, Mason begun a website called ThePoint.org as a site for collective action, to get groups of people together to solve public and social issues. It wasn’t as effective as he projected, and so started to think of how he could take the group approach of ThePoint.org and turn it into a business channel. Mason believed the Internet had potential to change how people discover and buy from local businesses. That’s when Andrew Mason came up with the excellent concept for Groupon. “Part of Groupon’s success is the simplicity of its business model…” (Kerin & Hartley, p. 110) Groupon offers “Deal of the Day” coupons from local and nationwide

It's no secret that Groupon values local businesses, but most people don't realize just how much it's helped over the years. Since the company began, it's helped consumers put more than $7 billion back into local

Amazon.com, Inc. or www.amazon.com has a mission statement to be the most customer-centric or customer-oriented retailer on this planet, where people can browse and buy anything they want to buy online with prices as low as possible on the market. (About Amazon) They are one of the world’s most important online retailers and providers of web service. (Amazon.com Inc.) They offer a large-scale of products such as clothing, merchandises for car and industrial uses, beauty and health products, books, games, electronic devices, grocery, food, jewelry, merchandises for kids and babies, movies, music, toys, sports goods, and etc. (Amazon.com Inc.) They also offer

Groupon needs to improve on its relations with merchants. “Merchants wishing to partner with Groupon and feature their products or services in deals were vetted by the company” (Wheelen, Hunger, Hoffman, & Bamford, p 11-3). How the partner relationship operates is Groupon negotiates with the various merchants and suppliers to gain promotion deals advertised to be on Groupon’s website. Groupon sells coupons to customers for a discounted price and also receives a commission from merchants. The definition of negotiation is: mutual discussion and arrangement of the terms of a transaction or agreement. If a mutual arrangement cannot be agreed upon or if expectations are too strict, Groupon may lose its merchant base. Furthermore, if merchants do not view the marketing efforts to be worth their time, they will go elsewhere. Merchants can become dissatisfied and look towards the competition that is also offering marketing ideas. Groupon should focus on improving affiliations with merchants so merchants see Groupon as part of their marketing strategy, which would allow for Groupon to do some of the work for the merchants. Groupon can survey various merchants to gather input on what merchants expect - what would work for them or not. Additionally, Groupon can promote the less selling items the merchants offer and promote those products and services. An incentive system to attract merchants is another

As a group, we have chosen to examine and report on Groupon and relevant information on the marketing strategies and efforts employed by the organization, as well as the ethics and social responsibility related to Groupon’s marketing. Groupon’s mission statement according to their letter to shareholders is “To become the operating system of local commerce.” Groupon has stumbled and disappointed users of their services because of rapid growth. Instead of focusing on growth, Groupon must listen to their stakeholders and improve relations with the customers-both merchants and consumers, as well as investors of the organization. We want to evaluate the company’s objectives, goals, marketing strategy, marketing mix, as well as

Groupon offers consumers a unique way into purchasing products they may have never sought out before. From adventurous buys like rock climbing or sky diving to the everyday dining out at a local restaurant, it has grown to encompass just about everything. Groupon’s business model is very creative on how it works with merchants to promote deals on a daily basis. A merchant will create a discounted package but it is predicated on how many people will buy into the deal before it goes live. This method guarantees a minimum amount of revenue that will be generated and comes at virtually no cost to the merchant. Once the threshold is met, the deals have been unlocked and the consumer can enjoy their purchase while Groupon and the store owner

Groupon has become the No. 1 of deal-daily Internet companies, and I think that its information systems are good enough. Either security issues, or technical support are good enough so far. However, Groupon still need to focus on the future because this industry is very competitive. Groupon have to keep learning and improving. Therefore, I recommend that Groupon should focus on the aspect of data storage and payment method.

Lefkofsky will later go on to invest a million dollars in Mason’s idea for The Point. Unfortunately for Mason, The Point had a hard time gaining traction and online traffic. Once The Point stalled and Lefkofsky pulled the plug, Mason went searching for another niche in online commerce. Mason and his team eventually came to an idea that is so commonplace most people would wonder why it hasn’t been thought of before. They figured that most businesses have unused inventory, food that goes to waste, and appointments that don’t get booked. (Sennett 53) Groupon’s main goal was to bring new customers to businesses because of their deals. The businesses developed deals with the hope of retaining repeat customers. The basis of Groupon was formulated when Mason and his team established the “tipping point” concept. If so many people bought the deal, then it would go through. If the deal didn’t “tip” then merchants would have no penalty and Groupon wouldn’t make profits. (Sennett 53) Most deals offered 50 percent or more off a seller’s goods or services. Owners got half the profits from each Groupon purchase and they would also fulfill the coupons. Another staple that sets them apart is the Groupon

Everyday Groupon features a unique, new experience at a discounted price in cities across the world. From restaurants and theaters, to spas, stores and special events, Groupon partners with local businesses to offer daily deals.Groupon deals you can get as much as 50-90%

In addition to these learning effects, Groupon is also a dominant design in its industry because of its leadership’s absorptive capacity, meaning that they have a great ability to recognize, adapt to and utilize new knowledge and changing market needs. Since Groupon began, Lefkofsky and Mason have developed a great “sink or swim” mentality that has led to the entire firm’s resiliency in facing the challenges of a newly founded industry. THE VALUES OF GROUPON In becoming the dominant design for the online promotional deal industry, Groupon has become a really valuable resource for merchants and consumers alike, and vice versa.

As Groupon is established in many countries of the world, a global strategy has to be pursued

Groupon is a deal-of-the-day website that is localized to major geographic markets worldwide. Launched in November 2008, the first market for Groupon was Chicago, followed soon thereafter by Boston, New York City, and Toronto. Groupon has over 50 million subscribers across 300 cities in more than 40 countries. The idea for Groupon was created by Andrew Mason who is currently the company’s CEO. [update]Groupon serves more than 150 markets in North America and 100 markets in Europe, Asia and South America and has amassed 60 million registered users. The growth in the future is likely to be at a slower pace, primarily because the company is already one of the largest in the local deals space.

In my opinion Groupon is not a ready-to-go solution to the problem of low marketing budgets of many local merchants. If Groupon is good

With the internet technology, everyone can stay at home for online shopping. What’s more, if you can enjoy daily discounts with all the information, home delivery and 24-hours daily operation, that’s all can be found by buying Groupon. Groupon, the company has successfully captured millions of online consumers throughout the world. The marketing strategy of Groupon captures the consumer behavior. Consumer buying behavior, defined as... “The buying behavior of final consumers, individual and households who buy goods and services for personal”.Groupon consumers mainly responses to: