Tomahawk, WI 8/09/2013 (Basicsmedia) – Many companies have gone through lean times of late. According to analysts, 2013 hasn’t been the rosy year many companies had projected and looked forward to. GRPN is among the companies which were expected to perform much better than it did. While the financial results it recently announced for the latest may have been impressive, I still feel that more could have been done to give it a better platform as it moves to the new quarter, and prepares for 2014. Let’s take a look at what Groupon Inc (NASDAQ:GRPN) has done to ensure it doesn’t repeat the mistakes of the past.

Acts Taken By GRPN to Steady The Ship

Unfortunately for some companies, they never get a few things right when they are facing a tough time. Some of these companies end up doing things which help take them deeper into murkier waters, financially speaking, thus making their investors to jump ship and move elsewhere. GRPN did one thing right, and that was demonstrated by its decision to confirm Eric Lefkofsky as its new head. The results were immediately visible as the company saw a huge 70% rise in its stock, although this is due to his combined efforts together with the board.

It seems that the industry experts and investors demonstrated their confidence in Eric’s appointment by investing more in the company thereby leading to a rise in the shares by close to 20%. As a matter of fact, this was attributed to the solid earnings which GRPN recently published, but it would be foolhardy for anyone to downplay the influence of this appointment in the overall turnaround in the company’s fortunes. But I believe more can still be done because the company is not completely out of the words according to me.

Which Is The Biggest Challenge Facing GRPN?

GRPN’s biggest challenge and source of headache has to be the fierce competition it receives from two industry giants in the name of Facebook and Google. These two companies are on a roll and GRPN has to do more than it has done thus far, to keep itself afloat and able to compete for a market share which is currently skewed in favor of both Google and Facebook. GRPN is not considered to be among the biggest stock in the tech world. The 5 largest stocks are Facebook. Google, Microsoft, Apple and Amazon. This shows you how much work it has to do.

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Image shows how many GRPN customer accounts are active.

Image is courtesy of www.valuewalk.com

What Does GRPN Need to Do?

GRPN has to get better at what it does, first, and then try to diverse its services so that it is able to compete with industry leaders. Some of the areas where it should focus on confidently competing with the five largest tech stocks, include hardware and software, content, and in provision of more services. If GRPN can get its act right in these segments, it will surely be on it sway towards completely changing the face of the company, thus boosting investor confidence which is something it is in desperate need of right now.

The areas where GRPN has to increase its performance in, are considered to be the major battlegrounds, where victory or loss will be determined. I’m still unsure if GRPN will take the initiative and apply these measures to turn everything around in its favor.

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