Groupon Threats: 1) The Economy a. Groupon offers deals on nonessential items.

This sector of the economy is often threatened in recessionary periods. i. Disposable Income is typically lower in a weak economy and thus consumers do not spend money on discretionary Groupon deals. 2) Low Barriers to Entry a. Groupon deals are difficult to differentiate in a highly competitive market. b. Groupon like deals are easily reproduced/copied. c. There are new competitor/imitator sites arising to compete with Groupon including tech giants like Google and Amazon. 3) Technology a. Groupon relies on email and other mobile technologies to connect with consumers and merchants. Any interruptions to access are harmful to growth. b. Internet Service Providers: limitations to the spread of Groupons deals though blocking of bulk emails or internet connection prices that are too high which limit a populations access to the internet and thus Groupon. 4) Existing Competitors in Other Countries a. Groupon has been expanding its services internationally. In some countries, competitors already exist and have the advantage of knowing the markets better and have a stronger understanding consumer and merchants needs. 5) Regulations a. Regarding international growth, Groupon is subject to gift card regulations (on expirations, fees, etc) which differ among nations. i. CARD Act of 2009 in the US b. Groupon has had problem integrating with local banks and credit card companies abroad. c. Adjusting currencies for items becomes tricky. d. Intellectual property laws differ by nation. Photos to use for each number (1-5)

1) Economy

2) Barriers to entry

3) Technology

4) Competition

5) Regulation