Company profile Coursework Example | Topics and Well Written Essays - 1000 words

Company profile - Coursework ExampleThis individual would be old enough to own a credit card that is mandatory for making the purchases and is adventurous to gauge out new products/services because these make up about of the discounted offers. Groupons success so far Groupon.com has forge out a unique market space, considering that it offers diverse products and services, which differentiates it from traditional retailers both brick-and-mortar and pure-play. Its major strengths are its gull as the trailblazer, its huge market presence, and its large financial backing of about US$ 1.2 billion. Groupons superior opportunity is in the ease with which it can extend its service to more cities throughout the world. In fact, the caller-out is currently leveraging its brand by extending its offering to willing collaborators through its Groupon Affiliate Program. The macro-environmental climate appears affirmative for Groupon.com. The possible difficulties that it whitethorn be in pos session of encountered due to political, legal, social, cultural and technological issues have for a greater secernate been addressed by other major online retailers such as Amazon.com and E-bay. Secondly, the fact that the world is emerging from an frugal recession, consumers are more keen to watch on their expenses and as such it would not be reckless to anticipate an increased market for coupon / discount / bargain shoppers who would appreciate Groupons value proposition. However, as Gans (2) augurs out, Groupons prospects for long-term success are not guaranteed. Groupons unsecure future Groupon.coms success has spawned legion(predicate) clones across the globe which Gans (2) estimates to be 400 competitors so far. The organizations greatest weakness is that its telephone circuit model is easy to replicate and even perfect. This makes Groupons first-mover competitive advantage difficult to sustain. Moreover, the low barriers to entre may make it tempting for some of the companys suppliers to contemplate integrating forwards. We cannot also discharge the threat posed by the Brobdingnagian Internet companies such as Google, Facebook, and Amazon that have the resources essential to acquire rival coupon companies and enter the industry. One of Groupons major strategic blunders was not to have taken the purported $6 billion bid from Google when it had the chance (Gans 2). Other than its leadership in having a big solid base of accounts, every other aspect of Groupons business is easily replicable. Furthermore, the companys US$ 1.2 billion current financial base is meager in comparison to, say, Facebook or Amazon, if they opinionated to acquire one of Groupons rivals and enter this new industry. The coupon industry is at a point where the early Internet companies where before the shakeout in the early 1990s. Groupons rejection of the Google offer could be viewed as a strategic blunder because Groupon.com could have utilized not only the cash injection but other resources available to Google to explore, discover and build a sustainable competitive advantage. Groupon.coms current strategy may not be able to ensure that the organization retains its current industry leadership status. For starters, with 400 competitors, most of who are beginning to focus on niches such as city or through their offerings, consumer actor continues to increase. Moreover, the information-rich Internet gives customers an edge when it boils down to selecting a coupon