Groupon SWOT Analysis

Groupon

Parent Company

Groupon, Inc.

Category

Deep discounted vouchers for products and services

Sector

IT & Technology

USP

The first company to provide online coupon deals

STP

Segment

Everyday internet users

Target Group

Internet users who like shopping and discounts

Positioning

To connect local commerce, increasing consumer buying power while driving more business to local merchants through price and discovery

SWOT Analysis

Strengths

1. Internationally recognized brand with operations in more than 40+ countries 
2. First movers advantage, it is the largest company in the daily deals market with 400,000+ active deals globally
3. Nearly 50 million active customers with strong revenues

4. Diversification into new markets with strategic entry into e-commerce

5. Focus on local, primarily small merchants

6. Getting users a taste of the luxurious goods at an affordable price

7. Over 10,000 employees are with the company

Weaknesses

1. High competition from other players means lesser margins
2. Lack of customer loyalty due to many customers being one time users for the deals

Opportunities

1. Market penetration of mobile apps has increased, Groupon can leverage this market with its app 
2. Better targeting of deals – personalization, to attract newer customers 
3. Relationship building with existing partners for long term and return business

Threats

1. Many copycats have emerged in emerging markets which threaten to eat into Groupon’s market share
2. Due to non-personalization of deals, it threatens the ecosystem of the complete business model
3. Anti-competitive investigations aimed to curb deep discounted deals

Competition

Competitors

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