Facebook, Groupon Go to War Over Deals

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Re: Interesting
magneticnorth   3/26/2011 4:08:41 AM

Hi Dave, I couldn't agree more. Groupon's a great company but if it doesn't integrate well with the rest of your life (as Facebook's service does), it can die a slow and painful death. Google will make a great ally.

Mitch Wagner
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Re: Interesting
Mitch Wagner   3/20/2011 10:12:04 PM

Dave Sasson - Recently, I've had my mind changed about Groupon. Previously, I thought it was a fly-by-night business with a simple gimmick, easily overwhelmed by Google or Facebook implementing their own deal-a-day program. 

Now, I think they're pretty smart. They're implementing a difficult business model that only SEEMS simple. 

Dave Sasson
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Re: Interesting
Dave Sasson   3/19/2011 8:35:32 AM

Maybe the Groupon board and investors should go re-visit that Google offer, if it is even available anymore.    Groupon at the moment is still the leader in this space and has a lot of leverage if it wants to make a deal, but this industry is still in its infancy and the competition is becoming fierce.    

Mitch Wagner
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Re: Interesting
Mitch Wagner   3/18/2011 11:06:30 AM

Damith - That's a really good point. Deal-of-the-day and group discounts may prove to be fads, but Groupon's batallion of salespeople with their knowledge of both local businesses AND the Internet will prove to be an enduring asset. That's their REAL value. 

Damith Wanigasekera
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Re: Interesting
Damith Wanigasekera   3/18/2011 3:46:36 AM


Things are not looking so bright for "deal-of-the-day Web site" but Groupon does have its own fixed channel from Sourcing to Selling and they will have a method to come out strong while providing  extra special deals in the States that have this "Facebook Deals" running, so right now all bets are off !!

It will be good on the consumer though with offers and slashes from both Facebook and  Groupon. Time to shop people!!!    


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Re: Interesting
cmophil   3/17/2011 8:19:42 PM

They should work together. It would be a much better strategic alignment. FB has the clientele and Groupon has the reach to the end retailers.

This reminds me of the fight for greed that is handcuffing the NFL as we speak.

Mitch Wagner
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Re: Interesting
Mitch Wagner   3/17/2011 5:53:30 PM

Groupon looks extremely vulnerable now. After all, what they do should be easy for a company with bigger resources, like Facebook, to emulate. 

The problem with that kind of thinking is that any companies on the Internet LOOK like they should be easy to emulate, but turn out not to be. Amazon.com and Netflix are two examples. Both should, by all logic, have been susceptible to squashing by brick-and-mortar retailers, but the execution proved much harder. 

Although with Amazon and Netflix, the brick-and-mortar retailers faced cultural barriers that probably don't exist with Facebook vs. Groupon. 

Baruch Hecht
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Baruch Hecht   3/17/2011 5:01:06 PM

Interesting development. I do think Facebook has a slight advantage over Groupon because Facebook has the end user, the costumer, as well as the marketer, the business fan page. But it's definitely a fight to watch...

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