Groupon is a website company that offers daily business deals in products and services e.g. restaurants. The company was founded by Andrew Manson in 2008. It was a new idea and Groupon was the sole player. This website company features coupon deals in order to provide con summers with better access. It operates by sending emails, website links, and mobile applications. It uses these platforms to reach their subscribers. This paper seeks to discuss how Information Technology helps Groupon to compete in its target market. It also discusses whether or not the company has a sustainable competitive advantage.
We will write a custom Case Study on Groupon Company’s Information Technology and Competition specifically for you
301 certified writers online
How does Information Technology help Groupon to Compete?
Information Technology is the use of computers and other related devices in businesses. Groupon uses mobile applications, websites, and emails to reach its subscribers. This shows that the company has embraced Information Technology in its business operations. Information Technology is associated with convenience, fastness, and efficiency. These three components fascinate many consumers in any given business. A big population today has access to Smartphones or any other portable mobile device that can be used to access the internet. Groupon on its part has ensured that it has a mobile application that is compatible with many operating systems of mobile phones.
According to Wolny (2013), the increased usage of Information Technology among consumers has led to the growth of a strong subscriber base for Groupon (Wolny, 2013). This has helped the company to be competitive in its target markets. According to Pearlson (2012), Groupon added a mobile capability to its services. This has increased its access to international markets. It has also enabled the company to fight the increasing competition back in its home country. Information Technology is integrated into businesses all over the world as a core competency. For instance, Groupon prioritizes it in its operations, in order to increase its subscriber base. This enables the company to compete with other industry players, which have emerged lately. In other words, the Groupon Company gains a competitive advantage by integrating information in its operations.
Do you agree or disagree with the statement? Does Groupon have no sustainable competitive advantage?
Groupon has a sustainable competitive advantage. As discussed above, the use of Information Technology gives Groupon a competitive advantage. According to Wolny (2013), Groupon has acquired untouched markets that put it on the growth path. The untouched market is largely international, apart from its domestic American market (Wolny, 2013). Technology is dynamic. This means that it evolves day and night. In this regard, Groupon cannot lack a sustainable competitive advantage. The competition may be stiff, but the company’s growth focus gives it a sustainable growth advantage. According to Pearlson (2012), some people may argue that Groupon does not add any value to retailers. However, this is not true. Many retailers benefit from the buzz created by businesses on websites. This gives other companies a lease of life. It also adds value to its business by increasing consumers. The argument of Groupon having no competitive growth advantage is invalid in this context. A close symbiotic relationship between retailers and Groupon also gives it a competitive advantage. Therefore, the company does not have a sustainable competitive advantage.
The Groupon Company operates a website business that sells Internet coupons to its service users. It utilizes the power of Information Technology to reach its large subscriber base both in domestic and international markets. This is fundamentally what gives Groupon a substantial growth advantage despite the growing competition. Information technology also increases its sustainability.
Pearlson, K., & Saunders, C. S. (2013). Managing and using information systems: A strategic approach. Hoboken, NJ: John Wiley & Sons.
Wolny, P. (2013). Andrew Mason and Groupon. New York: Rosen Pub.