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How Sustainable Is Groupon's Business Model?

4 pointsby darklighter3almost 14 years ago

1 comment

aorshanalmost 14 years ago
I feel that within the next year groupon's bubble will burst. I constantly read about how companies are unhappy with their groupon deals and how they will not use groupon again.<p>This article: <a href="http://arstechnica.com/web/news/2010/09/even-businesses-that-made-money-with-groupon-hesitant-to-try-again.ars" rel="nofollow">http://arstechnica.com/web/news/2010/09/even-businesses-that...</a> talks about a study done on companies that used groupon and it found that 42% wouldn't do a deal again. That simply isn't sustainable as a form of business.<p>I have also read on numerous occasions that many of the companies that have used groupon found that the people using the groupon deals were previous customers. This defeats the main purpose of using groupon as a company and will likely contribute to the (predicted and in now way absolute) downfall of the company.<p>I also feel like companies like groupon will be helping to create a massive tech bubble, similar to the one in the late 90's and I am worried that it will burst from rampant over-investment in companies.
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