Janet Cookson, Eva Zaman, Faiza Ejaz, Grace Odom, & Jonathan Bryson

Commercial TV Commercial

Background Information 2007 – Started as ThePoint.com 2008 – Founded Groupon 2010 – Named the Fastest Growing Company 2011 – Still at a net loss 2013 – Fired CEO

Sector, Industry, and Segment Technology Industry Internet Information Provider Segment of Focus Coupon Deals

Business Model Offers Groupon in each market it serves Works as an assurance contract Company earns approximately 50% of what customer pay for a coupon Consumers interested in buying products are entertained through e-mail Using social networking site to promote ideas

Groupon Revenue 2012

Groupon Deals

Competitors of Groupon 500+ other companies

External Environment General Environment Competitive Environment

General Environment Sociocultural Political/Legal Demographic Age Gender Material status Employment Sociocultural Couponing Political/Legal Legal proceedings/ regulations are moderate

General Environment Technological Economic Global Mobile media Economic Recession Global Rapidly expanding

Five-Forces Model of Industry Competition Threat of New Entrants: High Easy to start business   Buyer Bargaining Power: High Low switching costs for consumers Supplier Bargaining Power: Moderate Low switching costs for merchants Threat of substitute products or services: High Offer great deals Rivalry: Strong Intense Competition

Value Chain

SWOT Analysis Strengths Weaknesses Unique Product Offerings Strong Brand Image Great Customer Service Customer Loyalty Weaknesses High Debt Burden High Marketing Costs Weak Internal Control Costs

SWOT Analysis Opportunities Threats Potential Acquisition Target Increase Online Presence E-commerce Site Threats New Entrants Increased Competition Weak Company

Recommendations Create loyalty between customers and businesses Educate business owners Merge with a larger company Explore other options to support small businesses