SWOT Analysis Strengths Domination in market shares Groupon is the leader of the deal-of-the-day market, especially in US. Groupon dominates 30% to 40% in the market shares. Groupon serves more than 250 markets in the world, with more than 150 markets in 100 markets in Europe, Asia and South America. According to sources, Groupon already has 50+ million subscribers by January 2011 whereas LivingSocial only able hits 20 million subscribers. From the subscribers alone, we already see that Groupon dominates its closest rivals in the markets.
Business model Groupon generally serves two markets which are; the consumers, who wishes to save money, and the businesses who wants more market exposure. Many small businesses may not have the funds to create large or even small advertisement and they have limited ways to attract more customers. With Groupon, which have thousands of people checking out Groupon every day, small businesses may have a chance to get noticed. Furthermore, Groupon worked based on assurance contract. Groupon only offers its discount if a certain number of people sign up for that offer. Once the discount reaches its target, the offer will be available to all but if the threshold is not met, the offer will not be available. Therefore, this is a win-win situation because there no costs associated with being featured on Groupon; Groupon only make money by taking
6 a piece of each offer they sell. In other words, if the interest level not met, the business doesn’t risk losing any money at all. In short, Groupon is a savior for small businesses.
Wide market Groupon is not only present in US market but also available in the international market. Groupon had expanded its business to South American, Europe and also Asia. Groupon is one of the earliest deal-of the-day website to expand into the international market. Groupon had acquired some of the deal-of the-day website which provide similar services to it and re-branded it under the Groupon name...