groupon powerpoint

19
BERTILLE LION | CAREY BARGERON | RHYAUNA GUIDRY MGMT 6580 |DR. FRITZ

Post on 17-Oct-2014

239 views

Category:

Presentations & Public Speaking


1 download

DESCRIPTION

 

TRANSCRIPT

Page 1: Groupon PowerPoint

BERTILLE LION | CAREY BARGERON | RHYAUNA GUIDRY

MGMT 6580 |DR. FRITZ

Page 2: Groupon PowerPoint

INTRODUCTION

2007 – creation of “The Point” by Andrew Mason

2008 – creation of Groupon (group + coupon)

Business model - one deal per day, high discount, limited amount of time to buy the deal and limited numbers of deals offered

1st Groupon - deal for Motel Bar, located just downstairs from the Groupon office in Chicago, Illinois

End of 2009 – Groupon had spread to 28 U.S cities

Today – Groupon has expanded to 48 countries and over 500 markets

Page 3: Groupon PowerPoint

INTRODUCTION

Page 4: Groupon PowerPoint

MISSION | CULTURE

Mission: “to become the world's commerce operating system. By connecting buyers and sellers through price and discovery, we have the opportunity to become one of the world's essential companies, a daily habit for our customers and merchant partners.”

Culture – creativity, trust, empowerment, transparency, dedication to customers & mindset of a startup

“We assume that people are fundamentally good and people are responsible adults” – Andrew Mason

Examples: Open vacation policy, financial goals

Page 5: Groupon PowerPoint

WHAT MAKES GROUPON AWESOME?

Page 6: Groupon PowerPoint

CURRENT COMPANY PERFORMANCE

Fiscal year 2013:Gross billings - $5.8 billion

Revenue - $2.6 billion

Operating income (excluding stock compensation & acquisition costs) - $197.2 million for the full year

Gross profit margin – 58.34%

Operating profit margin – 2.94%

ROE – (-) 4.68%

Free cash flow - $153 million (5.96%

Page 7: Groupon PowerPoint

CURRENT COMPANY PERFORMANCE

Groupon is doing well in the daily deals market in terms of its market share and potential growth

2013 – 59.1% market share

GROUPON, INC.59.1%

OTHER24.3%

LIVINGSOCIAL16.6%

Page 8: Groupon PowerPoint

HISTORIC COMPANY PERFORMANCE

Page 9: Groupon PowerPoint

MAIN OPERATING METRICS

Subscribers - total number of individuals that have completed registration through a specific date, less individuals who have unsubscribed

in 2011, Groupon had 83.1 million subscribers.

Cumulative customers - total number of unique customers that have purchased Groupons since 2009

in 2011, it had 15.8 million customers

Featured merchants - total number of merchants featured in a given time period

In 2011, the pool was up to 40,000 merchants

Groupons sold - total number of Groupons sold in a given time period

In 2011, Groupon sold over 60 million Groupons total.

Page 10: Groupon PowerPoint

CORPORATE GOVERNANCE

Groupon Senior Management Team 2013 Chief Executive Officer & co-founder of the company

Eric Lefkofsky

Chief Financial Officer (since December 2010)

Jason Child

Senior Vice President , Product management (leaving in March)

Jeff Holden

Chief Operating Officer (since May 2012)

Kal Raman

General Counsel (since 2011)

David Schellhase

Senior Vice President, Engineering and Operations (since April 2013)

Sri Viswanath

Senior Vice President, Global Marketing (since June 2011)

Rich Williams

Page 11: Groupon PowerPoint

CORPORATE GOVERNANCE

STRATEGIC ISSUES

Lack of management skills Employees grow up to 10,000

Disconnect between top management & employees

Groupon went public – November 2011 Issues with Groupon's S-1 filing

CEO takes the blame

Andrew Mason forced to step down

-> Eric Lefkofsky became the new CEO

Page 12: Groupon PowerPoint

CORPORATE GOVERNANCE SOCIAL

RESPONSIBILITY

Big supporter of social responsibility

G-Team – team responsible for organizing events using the Groupon website to support many causes

Social Innovation team in Chicago

Represent corporate social responsibility department

Fall 2013 – development of two research projects

Is Groupon generating more economic activity?

Is Groupon shifting customers’ behavior?

Page 13: Groupon PowerPoint

EXTERNAL ENVIRONMENT- 5 FORCES

Threat of entry (HIGH) Anyone can start an online discount business with enough capital.

Buyer power (HIGH) There are low switching costs for consumers.

Buyers are always asking for more discounts/lower prices.

Supplier power (MODERATE) There are low switching costs for merchants.

However, merchants are at the mercy of group buying sites.

Rivalry (INTENSE) Fierce competition based on territorial expansion.

Substitutes (HIGH) Many competitors.

Easy to find similar deals on competitors’ websites.

Page 14: Groupon PowerPoint

EXTERNAL ENVIRONMENT- COMPETITION

Groupon has five major competitors:

Living Social - offers one deal a day like Groupon

Tippr - same business model as Groupon but offers 3 deals

BuyWithMe - similar model but only offers deals if enough people bought it

Kgbdeals - offers several deals per day but the quantity is very limited

ScoutMob - offers discounts that will allow you to spend money at a restaurant of your choice

Page 15: Groupon PowerPoint

INTERNAL ENVIRONMENT- SWOT

 Strengths: Effective communication and fast transaction

Innovation (=new way of purchasing)

Large customers database

Leader (currently) amongst competition

Many brands and variety in products or services (serve large group of customers)

Strong brand recognition

Geographically diversified – operates in 48 countries

Weaknesses: Over leveraged financial position

Only available in most major cities

Usually first timer customers & rarely return

Recurring high marketing expenditure to maintain growth

Page 16: Groupon PowerPoint

INTERNAL ENVIRONMENT- SWOT

Opportunities: Acquisition/Takeovers from large companies

Opportunities to grow market for new products and services

Partnership with social networks

Growth & development of apps for smart phones

Opportunity to tie up with Internet companies such as Google and Facebook to publicize its deals and enhance its reach

 Threats: Deals mostly offered on discretionary items

There are no significant barriers of entry in the daily-deals segment

Strong competition from Living Social and other competitors

The purchase power could be lower in a big market (major cities)

Economic crisis or slowdown

Page 17: Groupon PowerPoint

KEY SUCCESS FACTORS

Need to provide best deals

Lots of variety of deals

Get customers to develop positive word of mouth

Good access to channels

Use transactional data to track customers’ preferences

Take advantage of latest technology advances

Page 18: Groupon PowerPoint

STRATEGIC ALTERNATIVES

Become the starting point for mobile commerce

Redefine local commerce

Enhance the email experience

Continue to build out their categories

Globalize the platforms and processes

??????

Page 19: Groupon PowerPoint

THE END

QUESTIONS?