Groupon Company was founded by Andrew Mason, the Chief Executive Officer, in 2008. The company through a strategic business model quickly rose to become the leader in the daily deal digital industry. Since the year 2009, the company has been characterized by impressive revenue and subscriber growth reporting $1.6 billion in revenue and 150 million user subscribers by 2011. Even though the company’s growth has been characteristically impressive, the industry it operates in is very new and as such the investors have waited upon Groupon’s ability in demonstrating its ability to report profitability. The company is essentially a website that characteristically features deal coupon deals available to individuals and businesses. This system provides such merchants with a huge base and access to consumers and the consumers to the merchants. To further improve the experience, Groupon’s system targeting mechanism is based upon personal preference and the location. Additionally, with this access to coupons, the users are also provided for suggestions to new services and goods with a discount attached to the same. Even though the company signified rapid growth, it has since an exponential increase in the competition with an approximate number of 383 by the end of 2011. SWOT Analysis A …show more content…
With this, the company can determine the high-value merchants that are very valuable to the company. More so, determining the type of merchants, products can be targeted towards specific customers and thus increasing the deals on either side. Additionally, with the company becoming aware of each and every merchant type under the system, Groupon can thus endeavor in providing the best services to each and every merchant on the platform. Ultimately, this will retain quality merchants and ultimately lead to return customers both which are crucial for the company’s