Groupon – already the hype of 2011?

As always….a young and entrepreneurial spirit, Andrew Mason, comes up with an idea to create added value for customers and suppliers. A basic idea, group leveraged discounts, transferred to the flat world.

We all know group discounts….it’s an easy principle: a large group can negotiate small prices because of the size of the order. Mason transferred this system to the flat world and into the social media with Groupon. It’s already the fastest growing company in the US, and now wants to concur the world.  You register and log-on through the groupon of your town. Groupon will each day sell a product or service with a huge (up to 50%) discount. The only condition is that enough people by the offer. In the US they’re already working with major companies, but in Europe for instance they’re offering small local initiatives (at a very good price!)…..Once they can open the box with the big deals from the major companies they’re bound to get huge!  To get word aroudn Groupon uses social media channels, every Groupon-member who tells about the deals through Facebook, Twitter, Netlog, … gets a 6 EUR in his account everytime an interested member steps into a Groupon deal.

Google already saw a huge opportunity and offered up to  6 billion Dollar for Groupon but Mason keeps the company under his own wings.  Will he be able to maintain his market share since there are a lot of new initiatives starting up with the same idea, f.i. Living Social (which is a partner and sold a value of 1,3 mio EUR in in only 24h time, with every coupon was paid 10 EUR but had a value of 20 EUR), Groupprice, Localdealsites, vente-exclusive, ….

Future will tell, but this will get huge in 2011!
You can share your hot deals and remarks through the comment section.

[Update: january, 26 2011: Today Google announces Google Offers a site where discounted offers will be posted for a limited time frame.  When Google offers will be operational was not yet announced! – As I predicted….this is going to the hype of 2011!]

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Posted in Flat Business, Flat Lifestyle
5 comments on “Groupon – already the hype of 2011?
  1. Claudi says:

    The Groupon idea is interesting and good. But I think you have to be careful to buy vouchers via internet. Not every voucher offer is a steal. So it is necessary to compare the voucher offer with other providers. Also it is critical to publish personal data on the internet.

  2. Martina says:

    In my opinion Groupon is a very trendy platform which makes special offers to customers who are interested in a particular product or service. It is especially designed for young and female customers because it focuses on issues like beauty, health and fitness. Moreover it seems to be a very successful business model. Apart from that it is getting popular all over the world by using social marketing sites like Facebook. But Groupon can cause problems too. For instance small businesses can get in trouble when too many customers are interested in this deal. There could also arise the problem of unsatisfied customers.

  3. Marcello says:

    The social buying site Groupon could be a good possibility to make discounts. I wouldn`t buy on this Website. In my opinion the company was growing to fast and I coundn`t share this hype. Maybe this hype and Groupon’s eagerness for a public offering is a forerunner of a Dotcom Bubble 2.0.

  4. Wolfgang says:

    The business modell of Groupon reminds me of the business model of the company Lyoness, which offers payback and discounts, for registered members.
    This company is also grwoing very fast in Europe and it seems that there are only winners.
    And exactely that is the fact, where I get sceptical. Is a system possible in which everybody benefits?

  5. Nadja Separovic says:

    In the last week I saw a documentary on TV about this company. A team interviewed customers and they asked for their opinions. Some “Groupons” are real bargains, but there are also many suppliers/partners of this company which do not offer real bargains for the customers. At the end of the report, the management was asked about the negative experiences of their customers and he said that the partners of Groupon should be checked regularly. He know about the problem that many good offers aren´t so good and the system will be optimized.

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