>this is a doomed biz model because it's not based on any real technology
Neither is Dairy Queen, but everyone knows if they want delicious vanilla soft server where they need to go. Likewise, millions of discount seeking customers know that a place to go to find discounts is Groupon.
Groupon is doomed if they can't get revenue above their operating costs. It has nothing to do with the technology they are based on.
Agreed. Growing competition, encouraged by low barriers to entry, no network effects, no strategic competitive advantage... They're looking for a valuation higher than that of the Campbell Soup Company. Would Andy Warhold have turned a Groupon coupon into pop-art? I don't think so.
Groupon could pivot its way into a more tech-focused strategy (see http://goo.gl/qi8xa for an example) but I doubt their management has the wit to do so.
I'll bet $1,000 that, over the next year, the Campbell Soup Company will prove to be a better investment than Groupon.
Dairy Queen has physical locations, serving that specific location and market. It takes time for the company to do research on specific market segment and why there needs to be a physical location there. It also takes time to build, train, and hire employees in order to service that market.
Groupon: user is only sustainable based on type of deals. business model easily replaceable by any upcoming player.
plus there's so many things going inside the company right now...Groupon's own sales team is suing the company? come on, what does that speak to the company itself? the whole company is made up of salespeople!!
Don't get caught up on the metaphor. It's ice cream. That was the point.
If you, or anyone else, wants to explain why Groupon is doomed, then do so without saying the reason is because it's "not based on any real technology". That's the comment I was replying to. I'm not defending Groupon.
jemka, my point is that Dairy Queen has more real technology than Groupon. Their icecream is their product. Groupon has none. Groupon has coupons as a product and that's not a technology. Icecream is!!
The point you're painfully missing is that success of a company (including Groupon) isn't dictated by how much or little technology they use. If you feel Dairy Queen was a bad metaphor for that, then I apologize for your confusion.
Sure, Groupon is successful, but is it sustainable? To me, it's not a good business model because it could be easily copied, easily replaceable, and anyone could do it. Short-term success doesn't translate into a sustainable business model.
Neither is Dairy Queen, but everyone knows if they want delicious vanilla soft server where they need to go. Likewise, millions of discount seeking customers know that a place to go to find discounts is Groupon.
Groupon is doomed if they can't get revenue above their operating costs. It has nothing to do with the technology they are based on.