Groupon.com Situation Analysis - Coursework Example

Groupon.com has carved out a unique market space, considering that it offers diverse products and services, which makes it difficult to evaluate whether it has traditional direct competitors.

Of course, its success has made numerous clones pop up across the globe (Wauters, 2010) but it is possible that it still has market leadership in this new market space. Its major strengths are its brand as the trailblazer, its huge market presence, and its large financial backing of about US$ 1.2 billion. Its big weaknesses are that its business model is easy to replicate and therefore it may face difficulty in sustaining its first-mover competitive advantage. Groupon.com’s greatest opportunity is in the ease with which it can extend to more cities in the world.

Currently, it is leveraging its brand by extending its offering to willing collaborators through its Groupon Affiliate Program. Its major threat is the low barriers to entry or threat of forward integration posed by its suppliers. The macro-environmental climate appears favorable for Groupon.com. The possible difficulties that it may have encountered due to political, legal, social, cultural, and technological issues have already been addressed by other major online retailers such as Amazon.com and E-bay because the platform used is the same.

The fact that the world is emerging from an economic recession (economic environment) translates to an increased market of discount/bargain shoppers who would appreciate Groupon.com’s value proposition.