Quote:
Originally Posted by epitome
Anyone can clone the script and groupon could care less about that.
It is much harder to get their traffic and the 3500 or whatever employees they have to make such a site successful.
The biggest thing they have to worry about is merchants deciding it isn't a good idea for generating business.
It is along the lines of saying Facebook will be replaced tomorrow or next week because it used to be MySpace and Friendster before that when that is an invalid argument and neither of them have anywhere near what Facebook does.
|
right, but it doesn't appear THAT impressive... they don't have that many local offers, good chunk of the traffic comes from PPC, their ads are all over the place, etc
their business plan is a bit flawed too I think, it depends on signing up new merchants all the time, so it's not very scalable, requires a huge sales team...
facebook in comparison just requires some servers and a some engineers to keep the infrastructure going, which is much easier and much more scalable...