Consider Groupon's tipping point sales model to be the innovation. Groupon clones took a method known to work in one market, and applied them to new vertical a

Consider Groupon's tipping point sales model to be the innovation. Groupon clones took a method known to work in one market, and applied them to new vertical and geographical markets before Groupon could. As far as the technology (in his case a promotion methodology) can be applied to the market, and as far as this can be predicted with some certainty, an arbitrage opportunity exists. In my mind, yes, arbitrage is inherently a low-risk investment, but only when compared to the potential return of the investment.