How does Groupon succeed while doing everything "Wrong"?

http://replicatorinc.com/blog/2010/09/groupon-the-anti-web-service/

by replicatorblog • 16 years ago

3 3 16 years ago

catone• 16 years ago

It seems to me that all of those arguments could be applied to Woot, which did quite well before Groupon. They're at least following a once-proven model.

(Woot has always had a tacked on community, but so does Groupon.)

thejash• 16 years ago

How is groupon doing everything wrong? That doesnt make sense. Responding to the points in order:

1. "No Customization" -> I've certainly never seen a rule saying that everything needs customization. If anything, the advice for startups is to focus on doing one thing right, and NOT have options and customization.

2. "Anti Social" -> Wrong. It IS social, but in the GOOD way. Those facebook and twitter buttons rarely cause people to share something. Instead, I've had lots of people (via email and real life) tell me about groupon deals because of: A. How good they are, and B. There is a time limit, so it's an implicit call to action.

3. "Anti Tech" -> I'll give you this one. It's surprising that there is basically no technology behind it, only because, well, why didn't someone else think of it first? This is also leading to their major problem--lots of competitors because there is such a low barrier to entry.

4. "Anti Posterity" -> It's like those TV ads "If you call now, we'll through in X and Y!!!". The two approaches are mutually exclusive--if deals didn't expire, why should I bother sharing it with my friend right NOW?

5. "Anti Targetted" -> Nope. They're targetting a demographic that is willing to make an indulgent, instantaneous purchase. That's exactly the same people who buy cupcakes, cookies, and donuts. It would just be more expensive to get high quality photos from all the local cookie sellers in each city, that's why the image is the same, but people never see groupon for another city, so it doesnt matter.

jbail• 16 years ago

It's simple and it works.

How does Groupon succeed while doing everything "Wrong"?

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