While I agree that the concept of Daily Deals and Groupon as an implementation of that concept are not dead, I still think Groupon is going to struggle. 1) The

While I agree that the concept of Daily Deals and Groupon as an implementation of that concept are not dead, I still think Groupon is going to struggle. 1) The model is promising for some businesses, but a lot of them end up being one-time customers because the results are so poor. The most sustainable customers are those with high margins and high sales costs - a big market, to be sure, but enough to justify a multi-billion dollar company? I'm not sure. 2) I would be more worried about competition at the local level, which has smaller barriers to entry. Lots of companies (newspapers, tv stations, etc) have existing sales infrastructure for a region and can compete aggressively with Groupon. Add to that a handful of well-funded, competent competitors, and it is easy to see how Groupon's margins could continue to be squeezed. Is Groupon going to be around for a long time? Probably, but I doubt it will be as a multi-billion dollar company with good growth prospects.