The billion dollar valued e-commerce company Groupon (NASDAQ:GRPN) has displayed far better results than it was expecting in the third quarter of this year. The company enjoyed an increase of more than 25% in its stock. These earnings are a clear indication that the company’s growth strategies are working. The company had planned to speed up its growth in local business to increase more opportunities of profitability in its business which will lead to a further optimization and nurturing of international business.

The company’s course of action included international regions and North America. There are various barriers and success factors which drive the company towards success. The few tailwinds of the Company’s business include modifications in its website by introducing new features such as pages, time based deals, genome, success in mobile service platform, getting rid of unused deals and increase in its travel business. These are a few of the success driving factors which are expected to bring a positive change in the company’s merchant business resulting in expansion.

According to the analysts, these strategic plans to increase the profit margins and cost cutting will positively influence the company in the long run. According to the experts the investors need to keep a close eye on the company’s competition in its ecommerce and group buying sectors. This monitoring will although delay incoming investments and sudden huge caches of profits for the company but will in fact benefit the company in a way that will become more sustainable in the long run.

The company’s increasing reliance on its supply chain management or push strategy will eventually leave a bad impact on the company’s performance as according to the experts it’s highly undesirable for the company. Groupon (NASDAQ:GRPN) should increase its focus on its pull strategy instead to increase and sustain its customers. This will make the company more stable for a longer period of time. The company however faces a number of barriers towards becoming more sustainable and successful in the long run.

These barriers include an increasing reliance on its logistics and supply chain, the intense and increasing competition in the market is also giving indications of a very tough competition onslaught in the near future. Last but not least is that the lack of profitability could also become a major barrier towards success. Although the company is earning huge revenues but its profit margin has been low and too steady for some time. The company has to work on its profit capturing opportunities.

However there are different success driving factors that can lead the company towards success and more profits definitely. These include the increase in the number of cell phone technologies in the market and among the consumers, the innovations that the company can bring by modifying its website, growth and expansion in increasing margin travelling businesses, the course of action developed to increase the margins of e-commerce and buying group sectors, and getting rid of the number of unused deals.

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