Pestle analysis of groupon

Groupon is the leading online discount store, available in nearly 50 countries worldwide. Founded in 2008, Groupon is known for its extensive coupon deals for local products and services. The company works with merchants and drives consumer buying power through merchant products.

What factors influence the company’s overwhelming ecommerce power? Our PESTLE analysis of Groupon goes into the specifics.

Since currency is depicted locally, the company is at the mercy of currency fluctuations.

These fluctuations suggest Groupon is not recession-proof. But they offer timed, daily deals, to motivate purchases from every social class. The low deals are a win for everyone — customers receive cheaper items, and the tax is weakened by default.

Prior to Groupon, using coupons tended to be a private affair. Consumers influenced by social status weren’t admitting to using discounts. But the stigma has been washed away with Groupon — specifically with young professionals and women. With Groupon active across the world, discounts and couponing are becoming acceptable by many ethnicities and cultures.

Mostly because products are tailored to the countries tastes. The deals offered for American audiences will differ from deals offered to citizens of China.

They offer the option to use Facebook connect or email to signup. You can share deals via email, Twitter, Facebook, and Pinterest. Groupon’s business profile is available on LinkedIn. And all business transactions start through the Groupon website.

Groupon heavily relies on emailing subscribers about brand new (local) deals. A strong email list is a low-cost marketing method and provides a direct line of communication with customers.

Products offered by Groupon must follow local and country laws. These vary by location and product.

“ E” is for Environmental

Their marketing costs are reduced as they make use of email, social media marketing, and their referral system. And because technology is a fundamental part of business, marketing, and customer demographics, they proudly declare themselves environmentally friendly.

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