5 ms·

i would never buy groupon stock. this is a doomed biz model because it's not based on any real technology...the entire company is mostly comprised of only sales

by lien 15y ago

i would never buy groupon stock. this is a doomed biz model because it's not based on any real technology...the entire company is mostly comprised of only salespeople, which is pretty scary.

jemka 15y ago
>this is a doomed biz model because it's not based on any real technology Neither is Dairy Queen, but everyone knows if they want delicious vanilla soft server where they need to go. Likewise, millions of discount seeking customers know that a place to go to find discounts is Groupon. Groupon is doomed if they can't get revenue above their operating costs. It has nothing to do with the technology they are based on.
- dusing 15y ago
  No one makes Dairy Queen soft serve but Dairy Queen. Everyone makes 50% time based group coupons.
  - jemka 15y ago
    The point was that Dairy Queen isn't based off some spectacular technology. > Everyone makes 50% time based group coupons. Everyone? That's silly. Do you mean the coupon market is saturated? I would agree. But Groupon is at the very top. How does that doom them?
    - lien 15y ago
      Dairy Queen has physical locations, serving that specific location and market. It takes time for the company to do research on specific market segment and why there needs to be a physical location there. It also takes time to build, train, and hire employees in order to service that market. Groupon: user is only sustainable based on type of deals. business model easily replaceable by any upcoming player. plus there's so many things going inside the company right now...Groupon's own sales team is suing the company? come on, what does that speak to the company itself? the whole company is made up of salespeople!!
      - jemka 15y ago
        Don't get caught up on the metaphor. It's ice cream. That was the point. If you, or anyone else, wants to explain why Groupon is doomed, then do so without saying the reason is because it's "not based on any real technology". That's the comment I was replying to. I'm not defending Groupon.
      - lien 15y ago
        jemka, my point is that Dairy Queen has more real technology than Groupon. Their icecream is their product. Groupon has none. Groupon has coupons as a product and that's not a technology. Icecream is!!
        jemka 15y ago
        The point you're painfully missing is that success of a company (including Groupon) isn't dictated by how much or little technology they use. If you feel Dairy Queen was a bad metaphor for that, then I apologize for your confusion.
        lien 15y ago
        Sure, Groupon is successful, but is it sustainable? To me, it's not a good business model because it could be easily copied, easily replaceable, and anyone could do it. Short-term success doesn't translate into a sustainable business model.
    - lien 15y ago
      Dairy Queen has physical locations, serving that specific location and market. It takes time for the company to do research on specific market segment and why there needs to be a physical location there. It also takes time to build, train, and hire employees in order to service that market. Groupon: user is only sustainable based on type of deals. business model easily replaceable by any upcoming player. plus there's so many things going inside the company right now...Groupon's own sales team is suing the company? come on, what does that speak to the company itself? the whole company is made up of salespeople!!
  - ceejayoz 15y ago
    That statement is useless, it can be reversed easily. "Anyone can make soft serve ice cream. No one makes Groupons but Groupon."
- jackgavigan 15y ago
  Agreed. Growing competition, encouraged by low barriers to entry, no network effects, no strategic competitive advantage... They're looking for a valuation higher than that of the Campbell Soup Company. Would Andy Warhold have turned a Groupon coupon into pop-art? I don't think so. Groupon could pivot its way into a more tech-focused strategy (see http://goo.gl/qi8xa http://goo.gl/qi8xa for an example) but I doubt their management has the wit to do so. I'll bet $1,000 that, over the next year, the Campbell Soup Company will prove to be a better investment than Groupon.
  - Tyrannosaurs 15y ago
    I suspect that over the next year a tin of Campbell's soup would prove to be a better investment than Groupon.
    - joshuahays 15y ago
      This.

by lien 15y ago

i would never buy groupon stock. this is a doomed biz model because it's not based on any real technology...the entire company is mostly comprised of only salespeople, which is pretty scary.

jemka 15y ago

>this is a doomed biz model because it's not based on any real technology Neither is Dairy Queen, but everyone knows if they want delicious vanilla soft server where they need to go. Likewise, millions of discount seeking customers know that a place to go to find discounts is Groupon. Groupon is doomed if they can't get revenue above their operating costs. It has nothing to do with the technology they are based on.

dusing 15y ago
No one makes Dairy Queen soft serve but Dairy Queen. Everyone makes 50% time based group coupons.
- jemka 15y ago
  The point was that Dairy Queen isn't based off some spectacular technology. > Everyone makes 50% time based group coupons. Everyone? That's silly. Do you mean the coupon market is saturated? I would agree. But Groupon is at the very top. How does that doom them?
  - lien 15y ago
    Dairy Queen has physical locations, serving that specific location and market. It takes time for the company to do research on specific market segment and why there needs to be a physical location there. It also takes time to build, train, and hire employees in order to service that market. Groupon: user is only sustainable based on type of deals. business model easily replaceable by any upcoming player. plus there's so many things going inside the company right now...Groupon's own sales team is suing the company? come on, what does that speak to the company itself? the whole company is made up of salespeople!!
    - jemka 15y ago
      Don't get caught up on the metaphor. It's ice cream. That was the point. If you, or anyone else, wants to explain why Groupon is doomed, then do so without saying the reason is because it's "not based on any real technology". That's the comment I was replying to. I'm not defending Groupon.
    - lien 15y ago
      jemka, my point is that Dairy Queen has more real technology than Groupon. Their icecream is their product. Groupon has none. Groupon has coupons as a product and that's not a technology. Icecream is!!
      - jemka 15y ago
        The point you're painfully missing is that success of a company (including Groupon) isn't dictated by how much or little technology they use. If you feel Dairy Queen was a bad metaphor for that, then I apologize for your confusion.
        lien 15y ago
        Sure, Groupon is successful, but is it sustainable? To me, it's not a good business model because it could be easily copied, easily replaceable, and anyone could do it. Short-term success doesn't translate into a sustainable business model.
  - lien 15y ago
    Dairy Queen has physical locations, serving that specific location and market. It takes time for the company to do research on specific market segment and why there needs to be a physical location there. It also takes time to build, train, and hire employees in order to service that market. Groupon: user is only sustainable based on type of deals. business model easily replaceable by any upcoming player. plus there's so many things going inside the company right now...Groupon's own sales team is suing the company? come on, what does that speak to the company itself? the whole company is made up of salespeople!!
- ceejayoz 15y ago
  That statement is useless, it can be reversed easily. "Anyone can make soft serve ice cream. No one makes Groupons but Groupon."
jackgavigan 15y ago
Agreed. Growing competition, encouraged by low barriers to entry, no network effects, no strategic competitive advantage... They're looking for a valuation higher than that of the Campbell Soup Company. Would Andy Warhold have turned a Groupon coupon into pop-art? I don't think so. Groupon could pivot its way into a more tech-focused strategy (see http://goo.gl/qi8xa http://goo.gl/qi8xa for an example) but I doubt their management has the wit to do so. I'll bet $1,000 that, over the next year, the Campbell Soup Company will prove to be a better investment than Groupon.
- Tyrannosaurs 15y ago
  I suspect that over the next year a tin of Campbell's soup would prove to be a better investment than Groupon.
  - joshuahays 15y ago
    This.