Can you imagine turning down a $6 billion buy out offer from Google? Well, that is exactly what the online coupon site Groupon did. Groupon offers daily coupon deals to its users. For example, you could purchase a $100 voucher for a restaurant for $50 dollars. The catch is that a minimum number of vouchers need to be purchased before the deal is complete. The technology Groupon utilizes is not at all revolutionary. In fact, Bond (2010) reports that the idea behind Groupon is easy to duplicate and that hundreds of websites have sprung up across the globe that provide similar services.
Groupon's advantage comes from its business model. The "daily deals" are customized to the user's region. A user from Pittsburgh will only see deals for local Pittsburgh businesses. Addtionally, users can add personal interests to their profile, further customizing the deals that are available. Groupon is able to do this because of their organizational structure. According to Bond (2010), Groupon employs over 2,600 individuals, most of whom are NOT techy types. They are sales people who personally know their customers.
Most people would assume an offer from Google would indicate that someone had developed some new form of technology. In this case it would appear that Groupon found a way to personalize an internet business. I guess they wanted to hold onto that "innovation" a litle bit longer.
Bond, Andrew. (2010, December 10). A bullet that wouldhave made Google stronger. Retrieved from http://www.fool.com/investing/general/2010/12/10/a-bullet-that-would-have-made-google-stronger.aspx
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