Groupon Swat

Strengths

1. Original Ideal:

Our major strength is original idea. Groupon was the first company to make the group purchasing-power model popular through the use of the internet. This can also be classified as Groupon’s competitive advantage since they were the first ones to establish the model giving them the first movers advantage. It is the largest company in the daily deals market with more than 400,000 active deals globally.

2. Brand Name

Another major strength of Groupon is a strong brand recognition. This first mover advantage has provided them with the most recognized brand in the industry. Groupon is not only recognized Domestically but also Internationally. Groupon has operations in more than 40+ International countries. Also, Groupon enjoys the strong brand recognition given by the sheer number of subscribers.

3. Diversification into new markets

Our last strengths is Diversification into new markets with strategic entry into e-commerce. Groupon offers deals from a large number of merchants spanning a diversified range of products and services that cater to many groups of consumers.

Weaknesses

1. Negative publicity

A major weakness of Groupon is negative press that affects the company’s progress. An example is the public’s reaction to the Groupon commercials that were shown during the 2011 Super Bowl. One of the 30 second spots showed the peaceful mountains of Tibet, which transitioned into a promotion featuring half off a Tibetan cuisine. Critics analyzed the commercial as insensitive.

2. Lack of Customer Loyalty

Another weakness is lack of customer loyalty due to many customers being one time users for the deals. Groupon continues