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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.
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Janet Cookson, Eva Zaman, FaizaEjaz, 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 • Sector • 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
Competitors of Groupon 500+ other companies
External Environment • General Environment • Competitive Environment
General Environment • Demographic • Age • Gender • Material status • Employment • Sociocultural • Couponing • Political/Legal • Legal proceedings/ regulations are moderate
General Environment • Technological • Mobile media • Economic • 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
SWOT Analysis • Weaknesses • High Debt Burden • High Marketing Costs • Weak Internal Control Costs • Strengths • Unique Product Offerings • Strong Brand Image • Great Customer Service • Customer Loyalty
SWOT Analysis • Threats • New Entrants • Increased Competition • Weak Company • Opportunities • Potential Acquisition Target • Increase Online Presence • E-commerce Site
Recommendations • Create loyalty between customers and businesses • Educate business owners • Merge with a larger company • Explore other options to support small businesses