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What sort of barriers to entry does Groupon have against a local online version of itself, one that would know the city better, since its the people that live t
by chopsueyar 16y ago
What sort of barriers to entry does Groupon have against a local online version of itself, one that would know the city better, since its the people that live there work for that entity?
What about angieslist.com?
- chopsueyar 16y agoAnswering my own question: http://www.slideshare.net/dahlenc/groupon-business-model http://www.slideshare.net/dahlenc/groupon-business-model Slide 9 Negatives: Lack of network effect No technology barriers to entry No switching costs for merchants and customers Scaling is expensive(sales people on the ground) High cost of customer acquisition Pluses: Brand Economies of scale (winner takes most)