Groupon exists for 2 years now and has already turned down a take-over bid from google worth over 5 billion dollars. Easy to say, the company has loads of potential and it is not afraid to remain independent!
So what business is Groupon in?
This next video will explain it in a very basic and clear way:
Experts already predicted that the online market for 'local business advertising' will show major growth in the next years. It is not without a reason that both Facebook and Yahoo already have said they are planning to put lots of effort in this market.
Furthermore, Facebook has already launched their 'Buy With Friends' concept. This concept is now aiming on the games in Facebook in particular, but shows the same collective buying concept as Groupon.
Enough about the market, back to Groupon!
Recently Groupon has been negatively in the news with their Superbowl advertisement.
The ad says 'not all hope is lost', aiming at the situation in Tibet:
Groupon received a lot of negative response to this advertisement and immediately took the ad out of the air and offered their apologies.
Will this affect their business?
I don't expect so, everybody makes mistakes, they have offered their apologies and said they were wrong. Besides that, they have been all over the news lately, which without a doubt has positively influenced the brand awareness of Groupon.
My expectation:
Collective buying is the future when it comes to buying from local businesses!