Answering my own question: http://www.slideshare.net/dahlenc/groupon-business-model http://www.slideshare.net/dahlenc/groupon-business-model Slide 9 Negative

Answering 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)