Groupon was established in 2008 as an advertising and marketing company that began in Chicago and operates in 500 markets across 44 countries. It works on a daily deals model, where it features discounted deals from local businesses. While it grew rapidly initially, its growth has declined in recent years. It has faced challenges including lack of customer loyalty, improper financial reporting, and intense competition. To address its problems, recommendations include offering customized deals, targeting higher-end merchants, implementing customer relationship management, and advising partner businesses on best practices.

1. Made by - Edita Macikaitė EBMmfs3-01

2. What Is Groupon?
• Established: 2008;
• Industry: Advertising and marketing;
• Firstly started: Chicago;
• 500 markets in 44 different countries;
• Working principle: Deal of the day.

3. Groupon On The Decline?
http://www.nasdaq.com/symbol/grpn/interactive-chart?timeframe=1y

4. Funding – 1137 mln.$

5. Groupon Unique Visitors
http://go-digital.net/blog/2012/04/groupon-settling-into-new-steady-state-lower-users-but-more-usage-per-user/

6. Michael Porter’s Five Forces (1)
• Threat of New Entrants:
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•
•
•
Low barriers to entry and easy to copy;
Low switching costs;
Low capital required;
Low regulatory restrictions.
• Threat of Substitutes:
• Many substitutes: paper coupons, discount websites, auction websites.
• Competitive Rivalry:
• Many players: e-businesses and also regular product service shops.

7. Competitor Analysis

8. Michael Porter’s Five Forces (2)
• Bargaining Power of Suppliers:
• Increasing as number of players increases;
• Choose the market themselves.
• Bargaining Power of Consumers:
• Low switching costs;
• Priced-Based deals: No brand loyalty, one time deal seekers and buyers;
• High demand for better deals.

9. PESTEL Analysis
• Political:
• Government stability;
• Tax policies.
• Economic:
• Recession;
• Currency fluctuating;
• Developing vs. Developed
countries.
• Social:
• Culture differences;
• Ageing population.
• Technological:
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•
•
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Fast developing environment;
E-business flexibility;
Real time;
Dealing via phones/iPads.
• Environmental:
• Works in every market.
• Legal:
• International e-commerce low.

10. SWOT Analysis
Strenghts:
Weaknesses:
Original idea – first mover in the industry;
Negative online reviews;
Largest company in the daily deals market;
Emails preceived as spam;
Name – recognition internationally (in over 44 countries); No creation of customer loyality;
Diversified into new markets;
Deals not profitable for merchants;
E-business company let it be more flexible in strategic.
Rapid growth into other countries.
Opportunities:
Threats:
Continue to develop business on apps for phones,
One time users;
tablets;
Lack of deal personalization;
Increase deal variety;
New entrants too the industry;
Expand domestic areas;
Huge competition;
Partner with big companies;
Economic slow down.

11. Groupon Problems
• No customer loyalty;
• Improper marketing/advertising
strategies;
• Improper financial reporting;
• Lack of proper management.

12. Recommendations
Deal management
consulting services
•Advise the businesses on how to best structure and operate a deal:
•Number of employee's;
•Upsell;
•Follow up.
Deal customization
•Collect data about customers;
•Offer each customer the most relevant deals;
•Exclude the businesses existing customers.
Higher value
Filtering mechanism
Accounting
•Target the „luxury“ businesses category.
•Provide a feedback platform;
•Identify „best“ businesses and build stronger long-term relationships.
•Apply standardized accounting methods.

13. Conclusions
For solving part of these problems Groupon need to implement CRM.

14. Thank You For Attention!

15. References:
• D.Buchler, J.M. Downey, A.Goldstein, A.Kheyfets, L.Monitz, T.M.Truong. (2012). Groupon:
What a Deal. MBA.
• B.Popper. (2013). Greed is Groupon can anyone save the company from itself?
(http://www.theverge.com/2013/3/13/4079280/greed-is-groupon-can-anyone-savethe-company-from-itself)
• The Wall Street Journal. (2011). Groupon’s Terms Not Endearing.
Http://online.wsj.com/article/SB10001424052702304314404576413663290520884.html
• The Wall Street Journal. (2011). Groupon’s Terms Not Endearing.
http://online.wsj.com/article/SB10001424052702304314404576413663290520884.html
• ChiefMarketer.com. (2011). Can Groupon Grow Up?
• T.Slade, O.Hawkins, T.Teng. (2012). Groupon, INC. Grifin consulting group.