In an open letter to shareholders Groupon CEO Andrew Mason has outlined plans to take the firm into local ecommerce services with a series of products designed to expand beyond its core business. "Groupon is setting out to reinvent the multi-trillion-dollar local commerce ecosystem. We are building an integrated suite of tools …
history repeats itself
2012 Groupon I would like to introduce you to 1999 pets.com and webvan.com. The only difference is all the investors too young to remember the dot com debacle.
got to do something before their business model collapses.
In other words....
Our business model has no chance in hell of sustaining us, so we need to start throwing new ones against the wall to see what sticks
No other choice
Right now, as was said by LesboInMansBody (great name, by the way), Groupon has no choice but to change their biz model. They are heading for the wall very quickly. And, from what has been let out in the press so far, it appears it's not likely what they are offering is sustainable, either. Everyone would be better off if the company was just shot in the head now, rather than make us watch a prolonged death.
This whole IPO thing was embarrassing. The only saving grace for them was Zuckerberg's sage decision to spend a mighty billion on Instagram. Took the media heat off them for a bit.
Things like this are good for some laughs maybe, but too many people will be badly affected. This swing-for-the fences approach to growing the tech business has to stop.
Their new business plans sound no better than the old business plan.
The business model has always been dodgy, and now they want to build an ecommerce platform for local businesses. No competition there then. Except for Amazon. And ebay. And probably Google soon.
He said "ecosystem"!
Never mind any analysis of business models; I'd consider this huckster to be full of shit for simply using the word "ecosystem" in his letter.
anyone have a fork ?
Groupon appear to be nearly done..a light grilling, from all sides, should be enough to finish them..
something to do with
Businesses who have used them not going back.
Customers demanding refunds
Businesses who have not used them yet hearing how other businesses have lost money.
The customer is a Groupon customer and prolific bargain hunter who will never pay full price anywhere.
The customer is unlikely to come back and pay full price is he.