The company offers one "Groupon" per day in each of the markets it serves. If a certain number of people sign up for the offer, then the deal becomes available to all; if the predetermined minimum is not met, no one gets the deal that day. The point here is to get enough people to sign up for an offer. It is a win-win for local businesses and their customers if the deal is done. Customers get better discounts and discover merchandise and/or products they did not know or they have never tried. Businesses get guaranteed valuable customers, exposed to efficient, measurable, and risk-free marketing, and gain effective word of mouth advertising. Christopher Steiner states that Groupon is the fastest growing company ever. Its revenue has increased tremendously.
Google has offered $5.3 billion for Groupon, in what would be its largest acquisition yet, if it is completed. Should Groupon sell it to Google? I believe ultimately it is beneficial to Groupon because in today’s market, they are a lot of competitors. Groupon is a newly established company. In order to survive in a long term run, they have to grow, expand, and improve their competitive advantages. Selling to a company like Google, which is the largest searching engine in the world, is definitely a good strategy. However, the question to ask here is: is it the right time to sell? If it is not, when is the right time to sell?
Personally, I like groupon. It is fun to get the deal because you get a great deal and you feel the urgency. You have to get more people to get the discount. In addition, one deal, one day, one city. It is pretty fun and enjoyable. A very interesting article says a Man tries living on coupons for a year.
I thought that Groupon do not have to rely on Google to survive in the worldwide market. However, my opinion has changed after I found this article. China’s big compnay Baidu has established own Groupon-like website. Although Groupon has announced the launch of Groupon Hong Kong, Singapore, Philippines and Taiwan, Key to success in worldwide market depends on its competitive position in Chaina. Baibu is very strong competitor in Chana, so an acquisition by Google will be benefitial to both compnaies.
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http://www.pcworld.com/article/212220/chinese_search_giant_baidu_launches_grouponlike_site.html
As I posted in my blog (http://marketingsquare2011.blogspot.com/) the Groupon’s acquisition by Google, if true, brings enormous benefits to both sides. For Goggle, giving him a wonderful opportunity to merge Groupon with Google Place, its local business directory, and for Gropon, be under the protective wing of Google, will be much easier to dismiss all those competing services that are growing very fast. I believe that Groupon is a wonderful way to explore the possibility of internet, and how the web can show us things, opportunities and situations (in a really cheap way) non possible to be normally seen. Those kinds of services generate values not only for the customers but also for the dealers involved; they are appreciated by everyone and everywhere. Those two aspects could not remain indifferent to Google that, in many countries, still has big problem to be recognized and accepted as useful tolls for the life of each citizen. Business like Groupon could be the right channel to enter from the principal door in those countries for Google? We’ll see….
ReplyDeleteLorenzo