Founded in 2008, Groupon, the Chicago-based daily-deal giant, is a good example of entrepreneurship. Groupon is the first company to tap into the power of collective buying with its daily deals, identifying a new market and providing it with a unique service. Through the demonstrated innovation, it has gained various competitive advantages, which should have led to the rapid creation of a substantial amount of wealth. However, this is not the case for Groupon, which is currently running at a net loss. On the other hand, as a tech firm and a newer business, I would be rather surprised if Groupon is actually earning a profit. After all, given a young market that still needs some development, marketing expenditure is going to be astronomical. This has proven to be true as a major source of Groupon’s net loss is marketing expenditure. However, I felt that the key point is not whether Groupon is currently profitable or not, but whether it has the potential to rapidly creates a substantial amount of wealth in the future. Despite Groupon’s apparent success, many people are still skeptical about the sustainability of its success given the high risk associated with E-commerce.