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When and how can they eventually make some profit? If they aren't making a profit at expected ~2.5 B revenue, how would an additional infusion of 1 B make them
by paraschopra 15y ago
When and how can they eventually make some profit? If they aren't making a profit at expected ~2.5 B revenue, how would an additional infusion of 1 B make them profitable or let them grow more in the long run? Isn't that what companies get listed for?
- deleted 15y ago[deleted]
- Goladus 15y agoGroupon wants to be THE site for deals and coupons. If they acquire enough end users, the cost of acquiring new partners will go down. The benefits will be common knowledge, businesses will approach them, and lots of salespeople will get laid off or at least growth there will slow dramatically. But end users won't use groupon without a good selection of partners. There are a variety of strategies for building up a solid base of partners, and it appears groupon's tactic is a large sales staff. It's a gamble and I have no idea whether they will pull it off. If they don't eventually lower the marginal cost of acquiring partners they will certainly fail, but there is possibility for success and aggressive growth is an understandable (if risky) approach.