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(Bloomberg)   Groupon CFO says there will be no change to their business model after CEO exit. Translation: They'll keep bleeding money like a severed artery   (bloomberg.com) divider line 6
    More: Fail, Groupon Inc., Groupon CFO, chief financial officers, CEO, Ted Leonsis, Deutsche Bank AG, money-making  
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636 clicks; posted to Business » on 07 Mar 2013 at 9:53 AM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-03-07 03:39:26 PM
1 votes:

KFBR392: Rapmaster2000: Even without the flaws in the business model, the fact that it was easily replicated and had low barriers to entry told you that investing in any singular daily deal entity was a bad idea. This is pretty basic business theory.

I can't believe that Google offered $6B for it. Is there some Silicon Valley mania that causes rational people to think that any new thing is the next big thing?

1. They were first to market and they were/are the biggest name. There are kids in highschool who could write the code for facebook, but they don't have a billion users. Heck, look at Coca-Cola; flavored sugar water that can be perfectly copied around the world...and they are still #1.


This is wrong on a few counts.

1.  FB wasn't first to market.  It was third.  That's why I don't see the value in first-mover advantage when your model is easily replicated.  It doesn't look like MySpace's mover advantage over FB did it any favors.

2.  Coca-Cola doesn't sell "sugar water".  It sells 100+ years of brand equity.  You're confusing the physical product with what that physical product truly delivers.  It would take billions of dollars and a hundred years for Sam's Choice Cola to sell what Coca Cola sells.

The point is, Groupon is easily replicated... which is why it has been easily replicated.
2013-03-07 02:01:40 PM
1 votes:

Rapmaster2000: Even without the flaws in the business model, the fact that it was easily replicated and had low barriers to entry told you that investing in any singular daily deal entity was a bad idea. This is pretty basic business theory.

I can't believe that Google offered $6B for it. Is there some Silicon Valley mania that causes rational people to think that any new thing is the next big thing?


1. They were first to market and they were/are the biggest name. There are kids in highschool who could write the code for facebook, but they don't have a billion users. Heck, look at Coca-Cola; flavored sugar water that can be perfectly copied around the world...and they are still #1.

2. I suspect google wanted the data and wanted to integrate groupon into google plus, gmail, searches, etc.

3. Groupon could be a viable business model, but they need to stop (or reduce) groupons to sushi places and coffee houses. It's been proven time after time that most grouponers are simply using the coupons for a cheap meal. The restaurants get screwed and groupon loses potential for repeat business.

They should focus on groupons for tickets to things (where costs are large fixed) so like: Museums, ski mountains, concerts (probably not going to happen with ticketmaster existing), sporting events, etc. Whether there are 10 people or 10,000 it costs the same to run these places. However, if you get a bunch of people (who other wise wouldn't have gone to said event) to go you earn a little money of their tickets, but they are pay full price for parking, food, souvenirs, and whatever they spend.
2013-03-07 11:12:58 AM
1 votes:

Father_Jack: groupon... great idea. why the CEO didnt cash in for his 3 billion and run i'll never understand.

google offered me that much money noone would ever see me again.


Their books were so very cooked they never would have survived a review by Goog. The truth came out anyway...
2013-03-07 10:31:30 AM
1 votes:
groupon... great idea. why the CEO didnt cash in for his 3 billion and run i'll never understand.

google offered me that much money noone would ever see me again.
2013-03-07 10:06:28 AM
1 votes:

Flint Ironstag: Groupon have a business model?


Last I checked, their business model was to take money from the investors and pay it out directly to the CEO.
2013-03-07 10:04:05 AM
1 votes:
If you're not going to change the course, why throw the captain overboard?
 
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