TOWS Analysis of Groupon Inc.

As we see in the articles the most common external being competitive situation, this has a huge impact on businesses if the competiors has a better product this could make the consumer choose that product, resulting in decline in sales. This being in

As for external factors one of the external factors would be perhaps a new law that is given and affects directly or indirectly the business and that business needs to make some changes.

OPPORTUNITIES: In addition to new or significant trends, other external opportunities exist and how can we best exploit or benefit from each. Examples might include: * a market vacated by a competitor * availability of new communication technology * younger generation with a disdain for placing family members in nursing homes * lack of dominant competition * new market segment * niche market is growing throughout the states

Introduction of new technology, strictness in law, reduction in profit margin etc. are the examples of threats.

opportunities is the excellent climate and new items. Major threat is competition and the other is the

• External analysis which provides information as to the threats and opportunities which exist for the company within the external environment, example of opportunity is customer market, labour pool etc that has not been catered for, the threats include labour shortage, new competitors etc that might affect the company negatively,

After discovering errors in its accounting and the failure to set aside enough reseveres for customer refunds, Groupon. Inc announced revision of its first financial results posted as a public company in April 2012, which resulted in a cut to its 2011 fourth-quarter revenue of $14.3 million. In addition, this revision has reduced its fourth quarter operating income by $30 million, net income by $22.6 million, and earnings per share by $0.04, due to an increase of operating expenses after compliance with GAAP.

Potential threats could be government regulations, external business risks, rising cost of raw materials, an increase in labor costs, tax changes, price changes, growing competition and lower profitability.

Groupon’s name is the combination of the words “group” and “coupon” and the company was founded in 2008 in Chicago by CEO Andrew Mason who is also the founder of the campaign organization website ThePoint.com, the company which Groupon grew out of. So, the idea of groupon was born from a frustration of the founder when he wanted to cancel his telephone subscription. Groupon’s concept grew into an entirely new venture: a daily deals service that relied on the power of groups and the company remains the market leader in the sector of daily deal industry. The first deal the company offered was for 50% off at a pizza restaurant from the bar motel in Chicago, where it is currently headquartered. The company expanded quickly into Boston, New York, and Washington DC and has shown impressive growth. Groupon is one of the business website that continues to rise day by day and as proof, the company rejected refused $ 6 billion acquisition offer from Google. By 2010, it served approximately more than 150 markets in the north America, 100 markets (in Europe, Asia, and south America), and boasting 35 subscribers worldwide and 1.6 billion dollars of revenue in 2011 (exhibit1, Pg.11-8). Groupon makes money through commissions on the Deals of the day and the explosion of daily deals on Groupon is its key to success. The success allowed the company to become the second fastest website to reach the milestone of $ 1 billion of wealth in short time duration of 16 months,

Adding to the list of woes experienced by the young and newly public e-commerce company, in 2012 Groupon was forced to restate it’s 2011 financials due to a series of accounting missteps. Principle among these, was the company’s failure to adequately predict and account for the total amount of refunds that they were obligated to issue under their “Groupon Promise”, which in turn caused the company to allocate insufficient refund reserves. Also, as outlined in the ‘Statement of Financial Accounting Standards No. 48”, which discusses revenue recognition when right of return exists, revenue can only be recognized if “ the amount of future returns can be reasonably estimated”. (FASB 1) Unfortunately for Groupon, due to their introduction of “high-priced

Marketing is a fundamental tool for a particular business to communicate its services and goods to the consumers. In this marketing analysis, I would like to introduce with you the online-based company called Groupon through the marketing mix. A marketing mix is a tool of business to use in marketing, which consists of product, price, promotion, and place (distribution).

Groupon Inc. established in November, 2008 by Andrew Mason is an American e-trade firm with its central station in Chicago Illinois with more than 11,000 representatives and has its vicinity set up in near 50 nations (Yahoo Finance,2013). Groupon Inc. oversees Groupon organizations everywhere the world and is worth of multibillion dollars in income, offers also, stocks (Yahoo Finance, 2013).).The customary methods for leading little organizations are being rethought by Groupon; for dealers through procurement of sets of items or administrations including customized arrangements, and brand publicizing, installment preparing abilities, and POS answers for inspire more clients and do their business for them adequately, and for clients, offer of

III. EXTERNAL ENVIRONMENT A. Societal Environment Economic Opportunities George W. Bush has been elected as the new President of the United States. One of his goals is to implement a tax-relief program that will help stimulate consumer spending (Bush). This could increase the amount of air traffic if consumers choose to spend this unexpected income on travel. This could then boost airline revenues and allow for more completed purchases on Boeing's commercial aircraft.

An evaluation of the external environment illuminates the challenges the organization has no direct influence, however it must navigate successfully to survive. This analysis can assist in identifying specific opportunities that may arise and the threats that exist to achieving strategic goals. The external environment includes political, economic, societal, technological, legal and environmental.

Many factors shape and form the operations strategy of a corporation, for example, the ever increasing need for globalizing products and operations and thus reducing the unit cost, creating a technology leadership position, introducing new inventions, taking advantage of mass customization, using supplier partnering, and looking for strategic sourcing solutions. All of these factors require an external or market-based orientation; these are the changes that take place in the external environment of the company.