The new technology provides an opportunity to Groupon to practices differentiated pricing strategy in the new market. It will provide better clues regarding where customers are going and what trends Groupon can leverage. SWOT does not show how to achieve a competitive advantage, so it must not be an end in itself. Weaknesses of Groupon can either be absence of strengths or resources of capabilities that are required but at present the organization doesn’t have. SWOT analysis a highly interactive process and requires effective coordination among various departments within the organization such as — marketing, finance, operations, management information systems and strategic planning.
The marketing of the products left a lot to be desired. Even though the product is a success in terms of sale but its positioning and unique selling proposition is not clearly defined which can lead to the attacks in this segment from the competitors. In such a scenario Groupon has to carefully analyze the various trends within the Services sector and figure out what it needs to do to drive future growth. Free Press, O. Nearly 50 million active customers with strong revenues.
This can lead to a time based SWOT analysis exercise where Groupon leaders conduct SWOT at a fixed interval and assess what it needs to tinker to achieve the stated goals.
PorterCompetitive Strategy New York: Utmost care has been taken in the analysis of the brands. The frequency of conducting SWOT analysis depends upon the objectives of the company and rate of change in the industry it operates in.
This case study describes the beginnings of Groupon, as well as the firm’s rise to power, the rise of its numerous competitors, its decisions and expansion strategies, and the collective buying industry as a whole. It has come across as a mature firm looking forward to bring out products based on tested features in the market. Strong distribution network — Over the years Groupon has built a reliable distribution network that can reach majority of its potential market.
ChandlerStrategy and Structure Cambridge, Mass.: The marketing of the products left a lot to be desired.
One of the reasons is that the adoption of products is slow in rural market. Organizations also assess the likelihood of events taking place in the coming future and how strong their impact could be on company’s performance.
The new taxation policy can significantly impact the way of doing business and can open new opportunity for established players such as Groupon ewot increase its profitability.
Groupon SWOT Analysis / SWOT Matrix
To connect local commerce, increasing consumer buying power while driving more business to local merchants through price and discovery. MIT Press, L. Edit the Brand or Add a New One: In such a scenario Groupon Collective has to carefully analyze the various trends within the Customers, Entrepreneurship, Growth strategy sector and figure out what it needs to do to drive future growth.
Managing and eliminating these weaknesses can drive future growth of Groupon. ChandlerStrategy and Structure Cambridge, Mass.: Even though the product is a success in terms of sale but its positioning and unique selling proposition is not clearly defined which can lead to the attacks in this segment from the competitors.
SWOT GROUPON ( SWOT Diagram)
Days inventory is high compare to the competitors — making the company raise more capital to invest in the channel. Euromonitor”Services Sector Analysis “, Published in Secondly it is more costly for Groupon to serve the rural customers than urban customers given the vast distances and lack of infrastructure. What SWOT analysis explains?
It has put additional competitive pressures on players such as Groupon. It is facing caase challenges from international and local competitors.
Solved SWOT: Groupon SWOT Analysis / Matrix
Threats Groupon Facing – External Strategic Factors Intense competition — Stable profitability has increased the number of players in the industry over last two years which has put downward pressure on not only profitability but also on overall sales.
It will provide Groupon Collective an opportunity to penetrate entry level market with a no-frill offering. It can help the management of the organization to optimize performance, look for new opportunities, manage competition, maximize return on resources employed, and minimization of various business and policy making risks.
SWOT helps Groupon Collective managers to identify areas of weakness in operations in the organization. As circumstances, capabilities, threats, and strategies change, the dynamics of a studdy environment may not be revealed in a single matrix. Williamson, Markets and Hierarchies New York: This can help Groupon Collective to significantly venture into adjacent products.
Highly successful at Go To Market strategies for its products. This approach also suffers from one major drawback – it focus on individual importance of factor rather than how they are collectively important and impact the business holistically. Free Press, A.