Natural Physical Environment: Sustainability Issues As such, Groupon probably does not have a large impact on the physical environment, for it does not engage in the production of goods (Wheelen, Hunger, Hoffman, & Bamford, 2015). However, it is stated that the benefits which Groupon brings its customers (both the merchants and the consumers) are based on the economy of scale, for the company permits to sell/purchase goods in large quantities to several consumers at the same time (Mourdoukoutas, 2011). Also, e-commerce means that less paper advertisement is printed (Odeniyi, Lawal, & Kareem, 2015). Therefore, it might be possible to state that the enterprise is, on the whole, sustainable concerning the natural physical environment, for the economy of scale, is generally beneficent for the environment because large-scale production uses lower amounts of resources when it comes to the means of production, and because less paper advertisement is produced (Strength). Societal Environment (PEST) Economic The economic situation in a country has a considerable impact on the operations performed by e-commerce businesses because it affects the purchasing capacity of customers (Odeniyi et al., 2015). However, it should be noted that both during a crisis and a recession, e-commerce may gain large profits: during growth – because customers start buying more, during a contraction – because they need to save money, but still have to buy products and services (Strength). However, Groupon cannot expand to very poor countries because the technologies which allow for e-commerce may not be available to a large proportion of the population there (Weakness). Technological The e-commerce business greatly depends on the technological environment, for it is based on technological innovations (Odeniyi et al., 2015). The rapid development of the Internet technologies allows for quick growth of e-commerce, and it permitted Groupon to develop rapidly in 2008-2010 (Wheelen et al., 2015); nowadays, technological advancements can be taken advantage of as well (Opportunity). Certain platforms developed specifically for Groupon, such as real-time mobile apps with subscription, allow Groupon to retain customers more effectively (Strength) (Odeniyi et al., 2015). Political and Legal On the whole, political factors do not have a major impact on e-commerce enterprises (Odeniyi et al., 2015); these businesses do not engage in manufacturing, and it is generally possible to make products cheaper or more expensive without substantial losses to the business (Strength). However, legal regulations and taxes do apply, so the company depends on the legal situation (as practically any other businesses do). Nevertheless, the fact that the enterprise’s website is often localized (translated into the native language for a given country) often allows Groupon to take advantage of friendly legal policies (Strength) (Odeniyi et al., 2015). Socio-Cultural The social and cultural issues may have a strong impact on e-commerce businesses, for the latter have to adapt to the local culture and preferences (a possible Threat) (Odeniyi et al., 2015). However, Groupon was often successful in adapting to the local specifics; in particular, the fact that its website was localized in many countries greatly benefitted the enterprise (Strength) (Odeniyi et al., 2015). Task Environment The threat of New Entrants There is a very high threat of new entr