1. Quality Control
Rick Coyne
Ginna Erickson
Elias Carofilis
Groupon will be back on the top, 100% quality
guaranteed!
http://i.telegraph.co.uk/multimedia/archive/02183/groupon_2183973b.jpg
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2. Groupon became a public company in 2011, and since then has worked to create a
stable company that assists in connecting consumers and companies.
Groupon has a website and an application for smart phones, where consumers can
access the daily deals.
Current market position is $10.26 a share and down 0.25 (2.38%) as of
February 18, 2014
Groupon’s values are; start with the customer and work backwards, great people make great
companies, intolerant of mediocrity, build for the long term.
“Groupon's mission is to become the world's commerce operating system. By connecting
buyers and sellers through price and discovery, we have the opportunity to become one of
the world's essential companies, a daily habit for our customers and merchant
partners” (Our Mission, n.d.).
http://investorplace.com/wp-content/uploads/2013/12/bora-bora-best-vacations-beaches.jpg
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3. Strengths
The company is willing to go the extra mile to make sure that
all customers are happy with the experience with the site, as
well as the experience at the business that Groupon is
advertising.
Groupon has a large network of business that they
work with, and Groupon can offer many
opportunities to its customers.
Groupon has a strong customer base, with a desired
demographic of educated, working women.
Groupon has a strong presence on the Internet, and
uses technology to connect with its customers.
http://www.destination360.com/travel/exotic-vacation-destinations
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4. Weaknesses
In 2013, only two years after Groupon went public,
the organization fired the CEO, Andrew Mason
(Carlson, 2013).
During Mason’s tenure, there were accounting issues
and employees sued the company, among other
internal issues.
Businesses don’t trust the company to bring them back
profits worthy of advertising with the sites.
Customers don’t feel like they can trust the company as well and don’t feel
important enough which is a huge weakness considering there are strong
competitors out on the market trying to steal customers.
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5. Customer & Collaborator
Groupon’s majority of customers are women who earn more than
$50,000 annually. Over 80 percent of the customers have a college
degree, and over half of the customers are in the 18-45-age range.
Almost 100 percent of the customers would return to the business,
and 80 percent of the customers have referred friend to the business.
There have been over 500,000 merchants featured on
Groupon, and the collaboration is the backbone of the site
(Get the Most Effective Local Advertising Available, n.d.).
Groupon works with the travel site Expedia to book
discounted travel.
http://4.bp.blogspot.com/-W2UuYNSPBdk/UKn-6uoKTII/AAAAAAAAAdM/7Y2f07Er2hk/s1600/Famous%2BVacation%2BSpots%2BFor%2BCelebrities.jpg
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6. External Analysis
When Groupon first opened up for business they were in the forefront of
their industry but since those days three huge competitors have come to
shake things up with one being very surprising
Living Social and Amazon Local work very similar to the way Groupon operates and
makes sales and the social media giant Facebook has also become a competitor.
Business opportunities Groupon has is they are already pairing with, or buying, many
businesses that will increase its market share, and create a stronger customer base,
such as Ideeli (Lunden, 2014), a fashion site, and Ticket Monster, a Korean ecommerce
company (Edwards, 2013).
A major business threat is the pairing of Living Social and Amazon. Amazon invested
money into Living Social, but has not yet added Living Social to the Amazon website.
If Amazon decided to pair with Living Social, the end result could hurt Groupon
enormously. Amazon has a vast customer base, and it could propel Living Social to
the level of Groupon
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7. One of Groupon’s
biggest challenges is
fixing its reputation
after the initial
disappointment of the
IPO.
Groupon has received
criticism from small
business owners because
the businesses claim to
lose money on Groupon
deals, and will not run
another Groupon
campaign.
Groupon didn’t perform quite
as well as expected, and due to
many internal issues, the
company needs to regroup and
make sure its employees are
happy.
Challenges
Groupon is running into issues
with its expansion. Instead of
growing slowly, and keeping its
current customers happy,
Groupon focused on finding new
customers (Roberts, 2013).
http://www.upsidelearning.com/blog/wp-content/uploads/2011/05/a-challenge-for-designers-of-game-based-learning.jpg
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8. Solutions
A national advertising campaign featuring a collection of businesses.
Commercials, print ads, and Internet advertising highlighting
businesses across the country would restore the faith in Groupon.
Groupon would be advertising for its website, but also be advertising
for the destinations and businesses
. This would be good for businesses, but also show consumers that
Groupon still makes its pairing with businesses the top priority.
Giveaways are useful tools to get customers excited about the products
and experiences, while showing the customers Groupon is loyal to them
Groupon can request submissions from customers nominating someone who’s
deserving to go on a dream vacation.
The stories could be featured on commercials, and the vacation destinations would be businesses
that have paired with Groupon. Groupon can follow up with the customers during and after the
vacation to show the winners enjoying themselves.
http://i.imgur.com/dMWXOut.jpg
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9. With these solutions in place we will restore faith from our business clients and our customers which
will in return give Groupon booming business and new customers and clients.
Of course these solutions will not be free and in order to get this company to where it needs to be the
costs will reach close to 12 million but in due time it will pay off with profits being much higher than
initial costs for everything that has to be done.
With such bold moves from Groupon to get back the dominance they once had there could be a
chance that competitors start doing their own campaigns calling us out and claiming why they believe
they are the better company and why customers should not go to Groupon.
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14. 2014
March
Have a meeting with Jacobs Agency on proposed
campaign plan.
March-April
Hire a point person to work with Jacobs Agency
May
Hire regional spokesmen to communicate with small
business
Start shooting national business campaign
June-December
Air all recorded campaigns on all major
networks
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15. 2015
January
Create a street team
February
Have street team hit campuses promoting Groupon
March
Have point person contact and set up a meeting with
Jacobs Agency
April
December
Start shooting and airing national customer
sweepstakes
Announce winners of the sweepstakes campaign
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16. 2016
March
Start shooting and airing sweepstakes winner’s stories
on national tv
May
Start building physical Groupon offices around
the country.
July
Start forming partnerships with other big companies
October
Start meetings and negation’s with competitor's to
buy them out.
December
Start partnership with company giant eBay
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17. References:
Yahoo Finance. (2014, February 18). Groupon, inc. (grpn). Retrieved from http://finance.yahoo.com/q?s=GRPN
Breadcrumbby Groupon. (n.d.). A Better Way to Accept Credit Cards. Retrieved February 6, 2014, from
https://breadcrumb.groupon.com/payments
Carlson, N. (2013, August 9). New Groupon CEO: Morale Is 'Dramatically Better' Than It Was Under
Andrew Mason. Business Insider. Retrieved February 9, 2014,
from
http://www.businessinsider.com/new-groupon-ceo-morale-is-dramatically-better-than-it-was-
under-andrew-mason-2013-8
Cohan, P. (2012, August 20). Why Groupon Is Over and Facebook And Twitter Should Follow. Forbes.
Retrieved February 9, 2014, from http://www.forbes.com/
sites/petercohan/2012/08/20/why-
groupon-is-over-and-facebook-and-twitter-should-follow/
Edwards, J. (2013, November 7). Groupon Whiffs On Earnings, Stock Crashes ... Then Stages An
Amazing Comeback. Business Insider. Retrieved
February 9, 2014, from
http://www.businessinsider.com/groupon-q3-earnings-2013-10
Get the Most Effective Local Advertising Available. (n.d.). Benefits. Retrieved February 7, 2014, from
groupon
https://www.grouponworks.com/benefits-of-advertising-with-
Gilbert, J. (2011, November 4). Facebook, Google, Living Social: Groupon Competitors That Could Take
Over. The Huffington Post. Retrieved February 9, 2014,
from
http://www.huffingtonpost.com/2011/11/04/facebook-google-living-social-groupon-
competitors_n_1076964.html
Groupon. (2013). Groupon. Retrieved February 6, 2014, from http://www.groupon.com
Groupon Inc.. (2014, February 6). News. Retrieved February 6, 2014, from
http://topics.nytimes.com/top/news/business/companies/groupon-
index.html?offset=15&s=newest
inc/
https://www.teoria.com/referencia/media/img/reference.jpg
Wednesday, February 19, 14
18. References Continued:
Lunden, I. (2014). Groupon Moves Into Flash Fashion, Buys Ideeli For $43M In Cash. TechCrunch.
2014/01/13/groupon-moves-into-flash-
fashion-buys-ideeli-for-43m-in-cash/
Retrieved February 9, 2014, from http://techcrunch.com/
Novellino, T. (2013). Daily deals increasingly in dust as Groupon adds Freebies. Groupon
adds store
coupon feature Freebies. Retrieved February 9, 2014, from
h t t p : / /
upstart.bizjournals.com/companies/rebel-brands/2013/11/20/groupon-adds-
online-
ecommerce-coupons.html?page=all
Our Mission. (n.d.). Groupon Press. Retrieved February 4, 2014, from
https://www.groupon.com/press/about-groupon
Paczkowski, J. (2013). Groupon CEO: “I Was Fired Today.”. AllThingsD. Retrieved February 9, 2014,
mason-as-ceo/
from http://allthingsd.com/20130228/groupon-dumps-andrew-
Pavlo, W. (2012, April 3). Groupon Accounting Scandal, and We're Surprised?. Forbes. Retrieved
February 6, 2014, from http://www.forbes.com/sites/walterpavlo/
2012/04/03/groupon-
accounting-scandal-and-were-surprised/
Roberts, G. (2013, March 21). What You Need To Learn From Groupon's Unprofitable
Business
www.businessinsider.com/lesso-from-groupons-business-model-2013-Appendices
Wednesday, February 19, 14
Model. Business Insider. Retrieved February 9, 2014, from
h t t p : / /
