4 ms·
Groupon: Doomed by Too Much of a Good Thing
- pbreit 15y agoThis is a poorly reasoned article. I will only respond to the two bolded statements but the bulk of the article is questionable: businesses should become profitable before they become big This is contradicted by virtually all of the big, successful internet companies. I would challenge anyone to name even one internet company that was profitable before it was big (such as Amazon, Google, Ebay, Facebook, Twitter, Yahoo, etc). Groupon's fundamental problem is that it has not yet discovered a viable business model Groupon has discovered the most outrageously viable business model of pretty much any company formed in the past 10 years. It takes 25% of the business it facilitates. Totally unheard of in such mature markets as small business services and retail.