Transcript Sector, Industry, and Segment

Janet Cookson, Eva Zaman, Faiza Ejaz,
Grace Odom, & Jonathan Bryson

TV Commercial

2007 – Started as ThePoint.com

2008 – Founded Groupon
2010 – Named the Fastest
Growing Company


2011 – Still at a net loss

2013 – Fired CEO

Sector
◦ Technology

Industry
◦ Internet Information Provider

Segment of Focus
◦ Coupon Deals





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
500+ other companies


General Environment
Competitive Environment

Demographic
◦
◦
◦
◦
Age
Gender
Material status
Employment

Sociocultural

Political/Legal
◦ Couponing
◦ Legal proceedings/ regulations are moderate

Technological

Economic

Global
◦ Mobile media
◦ Economic Recession
◦ Rapidly expanding

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

Strengths
◦ Unique Product
Offerings
◦ Strong Brand Image
◦ Great Customer
Service
◦ Customer Loyalty

Weaknesses
◦ High Debt Burden
◦ High Marketing Costs
◦ Weak Internal Control
Costs

Opportunities
◦ Potential Acquisition
Target
◦ Increase Online
Presence
◦ E-commerce Site

Threats
◦ New Entrants
◦ Increased Competition
◦ Weak Company




Create loyalty
between customers
and businesses
Educate business
owners
Merge with a larger
company
Explore other options
to support small
businesses