It's pretty much a brand recognition thing. People recognize Groupon and would more likely be willing to conduct financial transactions through a well-known company. Most people who use the internet everyday like you and I don't care who is presenting the deal. Whether it be Groupon or some other advertising company.
The businesses that are offering the products or services get great recognition and exposure to new customers and would pay more for the better known advertising company, but are also willing to pay other advertising companies to do the same thing as well.
There will be a certain saturation level that will occur and the barrier to entry will rise quickly. One thing to note would be that these coupon advertising companies are bogged down and have long waiting lists.
They don't want to offer too many coupons for the same type of service or product in a given time period so they put businesses on waiting lists.
because otherwise I'm not sure how they're going to protect their concept. I mean, heck, I live in *Idaho* and there's something like four GroupOn competitors. I don't know how they differentiate themselves. I didn't even realize they were the first ones. I don't differentiate between them myself; I just look at the offers (and frankly I haven't even been doing that recently), not at who's providing them.
Just days after reports that Groupon may be putting a hold on its long awaited IPO, the word is out that our favorite coupon king is being sued by its own employees (I’m sure the term “former employees” would apply in this case) over unpaid overtime. The class action suit is being led by one-time sales department employee, Ranita Dailey on behalf of hundreds of Groupon employees, demanding back wages for the past three years plus punitive damages for the non-payment of overtime.
That's part of the trouble of being first to market. If you're going to be first, you have to keep innovating, and not rest on laurels, because there are always going to be competitors waiting in the wings to emerge during your weak moments.
I don't get it. What did they spend almost a billion dollars on? Lawyer fees? Obviously not accounting expenses. It seems like such a simple business model. Set up website, create legal docs. market to businesses and consumers of the targeted businesses.
Obviously there is a cap on the market and there is a low barrier to entry so branding is important to keep a decent market share. What is so difficult?
I mean in one day they sell 100 (certificates) for $100 each totaling $10,000 they take their 50% $5,000 That's just one of several deals in one location.
Are they trying to devalue their company? Are they getting advice from Netflix?
Ivka, you are right. If they are not able to generate enough traffic to their site, I don’t think they can get better revenue. Otherwise they have to go through a tuff cost cutting process. If they are not able to equalize the earnings and revenues, surly they may end up with a debt.
"It might have been the first (big) kid on that block, but it's open to anyone to steal the business."
That's the trouble with being first-to-market. GroupOn may have established the market here, but that doesn't mean it's in the clear. In the meantime others have had the chance to learn from GroupOn's mistakes and seize upon its missed opportunities.
The ThinkerNet does not reflect the views of TechWeb. The ThinkerNet is an informal means of communication to members and visitors of the Internet Evolution site. Individual authors are chosen by Internet Evolution to blog. Neither Internet Evolution nor TechWeb assume responsibility for comments, claims, or opinions made by authors and ThinkerNet bloggers. They are no substitute for your own research and should not be relied upon for trading or any other purpose.
After originally dismissing the need for applications optimized for Android tablets, Google has begun to promote those apps in Google Play. It's time for businesses that have previously accepted Google's "good enough" tactic to change their views.
Seattle is typically a great place to be a software developer. The Northwestern city regularly appears on top 10 lists for tech and computer science jobs. Though it is best known as the stomping ground of Microsoft, a number of other large corporations maintain offices in the city, and Internet startups abound.
Bitcoin has become a new darling of the tech press, the subject of several weekly articles suggesting the virtual currency might soon transform Internet commerce and even the world itself. From my unique vantage, however, this euphoria seems largely contingent on a collective myopia thatís all too eerily familiar.
The flawed government contracting process for complex health IT projects -- dramatized by HealthCare.gov -- seriously needs to be reformed, said David Blumenthal, MD, president of the Commonwealth Fund, and former national coordinator of health IT. Blumenthal laid out his views in a post on The Health Care Blog (THCB) and an interview with InformationWeek Healthcare.
You've heard the expression, "Out of the frying pan, into the fire?" Amazon lives in the fire. The e-tailer wins by keeping things hot for its competitors, employees, and itself, according to a new book.
Positec, a manufacturer of power tools for homes and commercial applications, achieves greater customer service flexibility and cuts hold times in half by using a cloud-based service to manage its call center.
Big-data and analytics tools enable marketers to understand customers as individuals, identifying unmet needs and addressing each customer as a "segment of one," says John Kennedy, VP corporate marketing, IBM.
Expert Integrated Systems: Changing the Experience & Economics of IT In this e-book, we take an in-depth look at these expert integrated systems -- what they are, how they work, and how they have the potential to help CIOs achieve dramatic savings while restoring IT's role as business innovator. READ THIS eBOOK
your weekly update of news, analysis, and
opinion from Internet Evolution - FREE! REGISTER HERE
Wanted! Site Moderators Internet Evolution is looking for a handful of readers to help moderate the message boards on our site as well as engaging in high-IQ conversation with the industry mavens on our thinkerNet blogosphere. The job comes with various perks, bags of kudos, and GIANT bragging rights. Interested?