GROUPON – Inevitable Failure – Inefficient Business Plan

GROUPON – Inevitable Failure – Inefficient Business Plan

I think the best way to evaluate GROUPON is the old fashioned SWOT analysis developed by Albert Humphrey. By way of reference SWOT stands for Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business plan.

Below we will look at GROUPON’s business plan in the form of the company’s Strengths, Weakness, Opportunities and Threats.


Source: GrouponWorks





In summary, while evaluating GROUPON’s business plan we find that there are no real assets, a business that has never been profitable, and that hurts its customers both financially and operationally. Therefore, we do not think GROUPON’s business plan is viable for the future.

The classic 19th century book “Extraordinary Popular Delusions & the Madness of Crowds” by Charles Mackay details the mentality of how bubbles are formed:

“We find that whole communities suddenly fix their minds upon one object, and go mad in its pursuit; that millions of people become simultaneously impressed with one delusion, and run after it, till their attention is caught by some new folly more captivating than the first. Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, and one by one.”

This post was written by Jimmy Moncrief


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

© 2009-2013 Business Model Institute .com - All rights reserved.