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Groupon holding up against stiff competition. Groupon's new ventures like Getaways and Groupon Now will be crucial for future growth, especially as the daily deals segment continues to saturate with more and more competitors.Groupon holding up against stiff competition. Unfortunately, Groupon Now has not yet managed to garner the position Groupon desired contributing just around 1% to the company's total value by our estimates.
Groupon holding up against stiff competition
While they may not have a material impact on Q4 2011 results, loyalty building programs like Groupon Rewards would increasingly assume importance as competitors like Google Offers expand further in 2012.
Meanwhile, Rue La La, an online retailer, shut down its daily deals business following in the footsteps of Facebook. This might be just a beginning to the consolidation of the daily deals industry in 2012, and would only increase as companies increasingly find it costly to manage a large sales force. For Groupon as well, it will be interesting to see the extent to which it has curtailed its marketing and administrative expenses for Q4 2011. The company has pitched its revenue growth story to investors for a long time now, but their patience to see Groupon become profitable may soon run out.
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