A Strategic Analysis of an Online Coupon Firm

GoodNews Media Inc. (GoodNews) provides an online coupon platform linking consumers and merchants in four local markets in Canada. This platform offers daily deals to consumers of 50 to 90% off a participating merchant’s services so long as a minimum number of them pre-pay for the merchant’s services. The purpose of this strategic analysis is to determine the best way for GoodNews to meet its owner’s profit and non-profit goals given the most likely future of the industry. GoodNews is in a weak position in the industry and this is unlikely to change because the firm has no key success factors, no sources of sustainable competitive advantage, and no clear way to gain either of these. This paper recommends that the best way to meet the owner’s goals is to exit the market by voluntarily bringing the business to an end and seeking a buyer for its key assets.