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Groupon SWOT Analysis

Published by MBA Skool Team in IT & Technology category Last Updated: December 11, 2023Read time:

Here is a detailed SWOT analysis of Groupon covering strengths, weaknesses, opportunities and threats.


Parent Company

Groupon, Inc.


Deep discounted vouchers for products and services


IT & Technology


The first company to provide online coupon deals



Everyday internet users

Target Group

Internet users who like shopping and discounts


To connect local commerce, increasing consumer buying power while driving more business to local merchants through price and discovery

SWOT Analysis


1. Internationally recognized brand with operations in more than 40+ countries 
2. First movers advantage, it is the largest company in the daily deals market with 400,000+ active deals globally
3. Nearly 50 million active customers with strong revenues

4. Diversification into new markets with strategic entry into e-commerce

5. Focus on local, primarily small merchants

6. Getting users a taste of the luxurious goods at an affordable price

7. Over 10,000 employees are with the company


1. High competition from other players means lesser margins
2. Lack of customer loyalty due to many customers being one time users for the deals


1. Market penetration of mobile apps has increased, Groupon can leverage this market with its app 
2. Better targeting of deals – personalization, to attract newer customers 
3. Relationship building with existing partners for long term and return business


1. Many copycats have emerged in emerging markets which threaten to eat into Groupon’s market share
2. Due to non-personalization of deals, it threatens the ecosystem of the complete business model
3. Anti-competitive investigations aimed to curb deep discounted deals




This article has been researched & authored by the Content & Research Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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