Focus on local, primarily small merchants 6. Given the scale of expansion and different geographies the company is planning to expand into, Groupon needs to put more money in technology to integrate the processes across the board. It will provide Groupon Collective an opportunity to penetrate entry level market with a no-frill offering. Secondly it is more costly for Groupon to serve the rural customers than urban customers given the vast distances and lack of infrastructure. It can happen to Groupon in the Services at the present moment. Anti-competitive investigations aimed to curb deep discounted deals.
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. A comparative example could be – GE healthcare research helped it in developing better Oil drilling machines. Certain capabilities or factors of an organization can be both a strength and weakness at the same time. These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets. SWOT does not show how to achieve a competitive advantage, so it must not be an end in itself. In the short term SWOT is an effective tool to improve business processes, part of business, or both together. It has helped the company to rapidly scale new products successes.
Groupon SWOT Analysis Matrix [step by step] Weighted SWOT
We make the greatest data maps. Decision makers in the case study Groupon can also use SWOT analysis to understand how key strengths can be extended either to adjacent areas or new industries all together.
To manage these competitive challenges and macro environment trends leaders at Groupon can use SWOT to pinpoint specific threats and allocate requisite resources to deal with those threats. Will it be able to sustain its incredible growth rate, or is its business going to peak quickly and then fade?
Groupon SWOT Analysis / Matrix
SWOT analysis a highly interactive process and requires effective coordination among sthdy departments within the organization such as — marketing, finance, operations, management information systems and strategic planning.
Strong Brand Portfolio — Over the years Groupon has invested in building a strong brand portfolio. Groupon Collective already have know-how to operate into the competitive US market.
To overcome these challenges companyname needs to build a platform model that can integrate suppliers, vendors and end users. 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. Threats Groupon Facing – External Strategic Factors Intense competition — Stable profitability has increased the number of players in the industry over last two geoupon which has put downward pressure on not only profitability but also on wsot sales.
To connect local commerce, increasing consumer buying power while driving more business to local merchants through price and discovery. Key considerations to write a good Groupon SWOT Analysis – Are there people extremely critical to organization that ccase tilt the balance between strengths and weaknesses of the company. Managers have to be certain if the weakness is present because of lack of strategic planning or as a result of strategic choice.
Based on Fern Fort University extensive research — some of the strengths of Groupon are —. Chandler, Strategy and Structure Cambridge, Mass.: Opening up of new markets because of government agreement — the adoption of new technology standard and government free trade agreement has provided Groupon an opportunity to enter csse new emerging market. This approach also suffers from one rgoupon drawback – it focus on individual importance of factor rather than how they are collectively important and impact the business holistically.
Groupon Collective can use the emerging trend to start small before scaling up after initial success of a new product.
Send your data or let us do the research. Secondly it is more costly for Groupon to serve the rural customers than urban customers given the vast distances and lack of infrastructure.
Groupon SWOT Analysis | Competitors & USP | BrandGuide | MBA
For example changing environmental regulations can be both a threat to company it can also be an opportunity in a sense that it will enable the company to be on a level playing field or at advantage to competitors if it able to develop the products faster than the competitors. It can happen to Groupon Collective in the Customers, Entrepreneurship, Growth strategy at the present moment. This can impact the long term growth of Groupon Not highly successful at integrating firms with different work culture.
The matrix cawe only a starting point for a discussion on how proposed strategies could be implemented. SWOT analysis is one of the most widely used tools for strategic analysis. Decision makers at Groupon can also use SWOT analysis to understand how key strengths can be extended either to adjacent areas or new industries all together.
ChandlerStrategy and Structure Cambridge, Mass.: Limitation dtudy Weighted SWOT analysis of Groupon 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. This can lead to higher profits in the short run for Groupon Collective but reducing margins over the long run as young people are less brand loyal and more open to experimentation.
It will provide the leaders with a better understanding of market, organization, and competitors. This brand groulon can be extremely useful if the organization wants to expand into new product categories.
High attrition rate in work force — compare to other organizations in the industry Groupon has a higher attrition rate and have to spend a lot more compare to its competitors on training and development of its employees.
Often leaders neglect trends in macro environment because of the narrow focus on the industry. Similar Brands in the same Sector:. Good Returns on Capital Expenditure — Groupon is relatively successful at execution of new projects and generated good returns on capital expenditure by building new revenue streams.
Reliable suppliers — It has groipon strong base of reliable supplier of raw material thus enabling the company to overcome any supply chain bottlenecks. Strengths are the firm’s capabilities and resources that it can use to design, develop, and sustain competitive advantage in the marketplace.