Analysis of business: groupon

Groupon business
Groupon is a technological shop. It allows consumers to buy products using its database available online. These consumers are getting a 50% to 90% discount on the goods they buy. There are various weakness and strengths that this company faces. This paper outlines the challenges the company faces and gives recommendations.
There are problems in Groupon. Recently, the board fired its Chief Executive Officer because of the fall in production level. The business was facing a downfall in its profits. The experts in the business field saw this as a wrong move, because the problem with the company was its market structure. Their strength is that they are up to date with the latest technology. The company’s weakness is that they cannot formulate a good market structure. Their opportunities are open in the technology sector because it is ever changing, and their threats are its competitors.
Groupon has to change some market structures so as it gain additional profits. The company has not designed a system, which can trap the customers’ loyalty. Customers have special offers, but it has to develop a relationship with its customers. Good relationship between employees and buyers will attract customers.
Loyalty is the most important thing from a customer. Groupon offers free sign up for customers and still open accounts without many questions (Chaterjee 1). With this, the company cannot estimate the customer’s loyalty. The customers view their online products, and if they are not satisfied, they do not return to the company’s site. Most of their customers do not get discounts because they are optional. This makes some customers disappointed and search for another client. Furthermore, the external employees are few, because they rely on the internet for their transactions. They stick to the internet, which is a wrong market organization. For many businesses, there must be many physical outlets, since, customer relation is important. Groupon should develop shops all over the world, which can easily solve customer queries and offer services physically. With this, they will keep their market base strong and improve their incomes. Customer experience is the best thing to keep him satisfied. A customer using the internet every time may feel bored and search for other alternatives.
Groupon should have a form of market stickiness. Their management should create a system that can sell their products in other alternatives apart from the internet. If they implement this, customers will stick to buying products from them. The technology business is competitive. The management has to implement resolutions immediately, to keep the flow of business on track. This company only offers coupons online. By offering other goods and services, they would have increased the customer experience. Despite this, some customers feel Groupon is available to them. It has become a common term among them. They feel they want something anonymous to keep them interested in new products. However, the customers feel irritated with the constant emails sent to them.
Groupon has to evaluate its business structure more often. It is the backbone to its achievements. The consumer taste is what they should aim to fulfill. They have to control their management turmoil, because they are the policy makers of the company. The management has to evaluate the accounting system in the company. Furthermore, the company has to maintain its margins in the market, by not allow competitors to take over the market.
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