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Does the company have first movers advantage or disadvantage? Explain.

Yes, the company has the first movers advantage and disadvantage too.Such as,

Disadvantages: Groupon is hoping that if they can earn more capital it will broaden its position. But this
procedure can only be succeeding when it has less cost in the entry market. Though Groupon is
attempting its best, but there’s not enough indication to it. Sometimes,there become a large number of
subscribers that Groupon cannot set maximum coupon for them. As it has first entrance to the market.it
reduces the competition and profit as well. For this reason, it effects on the long term goal of this
company.

Advantages: Groupon provides strong customer services.Besides,technology of this Groupon is


very simple. For this reason its sales grew more than its expectation. Groupon has increased its
demand through providing its own email address and purchasing details from the customers.
Moreover,Groupon attracts the restaurant and other business company by advertising in the
Google and Facebook.People can easily go to the restaurants with family and friends through this
coupon.

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