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How Sustainable Is Groupon's Business Model?
- aorshan 15y agoI feel that within the next year groupon's bubble will burst. I constantly read about how companies are unhappy with their groupon deals and how they will not use groupon again. This article: http://arstechnica.com/web/news/2010/09/even-businesses-that-made-money-with-groupon-hesitant-to-try-again.ars http://arstechnica.com/web/news/2010/09/even-businesses-that... talks about a study done on companies that used groupon and it found that 42% wouldn't do a deal again. That simply isn't sustainable as a form of business. I have also read on numerous occasions that many of the companies that have used groupon found that the people using the groupon deals were previous customers. This defeats the main purpose of using groupon as a company and will likely contribute to the (predicted and in now way absolute) downfall of the company. I also feel like companies like groupon will be helping to create a massive tech bubble, similar to the one in the late 90's and I am worried that it will burst from rampant over-investment in companies.
- ethnomusicolog 15y agoThe opinion of various tech blogger on Groupon is too harsch. Of course, lot of things around groupon business model are shady. Yet they uncovered a massive business opportunity which was not possible before the advent of the social web. They found a gem. Nobody can tell for sure whether or not they will be able to refine it correctly, but right now they are in pole position.
- aorshan 15y agoI absolutely agree with that. I think what they did was simply brilliant. They practically carved out an entire industry for themselves.