Two years ago groupon was an idea posed by CEO Andrew Mason. Today Groupon refused a 6 billion buyout from Google. Group0n is a prime example of entrepreneurship; taking something out of thin air and making it profitable. Groupon allows consumers to buy bulk coupons for local businesses. This allows businesses to access to new clients in hopes of gaining return clients in the future. However is this beneficial?
For Groupon, yes. Groupon is estimated to make $2billion this year, of which it has to split a part of that revenue with 250 local businesses. This allows for still quite a hefty profit to be made. Also considering Groupon is so new, many are still to hear of Groupon, and with this conflict now between Groupon and Google, publicity is spreading.
But is Groupon beneficial for the businesses, I’m not so sure. Groupon can encourage consumers towards the business however they cannot guarantee return clientele. As a starting point in gaining customers, yes Groupon is useful. But in making a lasting impression, probably not.
I can see Groupon becoming less popular. Businesses will reach their target clientele and stop using Groupon, bad client experiences will decline the usage of Groupon, and one day there is bound to be a “fake” coupon creating further hassle and harassment of Groupon.
http://www.pcworld.com/article/212500/groupon_to_google_no_thanks.html