Does Google offers and Facebook deals mean the end of Groupon?
April 24th, 2011
Ever since groupon launched in November 2008 “discount” sites have sprung up here there and everywhere. Not surprising considering recession has hit the globe and everyone is looking for a way to continue the lifestyle they have become accustom too.
Groupon was an instant success with the unique concept of a deal a day which was “on” or not depending on the number of buyers. The discounts were big, or at least appeared to be and the site was slick. So it didn’t take long for Google to sit up, notice Groupon and slap a $6 billion offer on the table. Not bad for a site that had been in existence for 2 years.
When Groupon turned down Google it was as sure as the iPad2 selling out on launch day that Google would set about developing their own version of the discount site. This is to be called Google offers.
Google Offers BETA is starting in Portland, Oregon and punters can get 50% off or more at the “places” they love. Places being the operative word. Google have developed their Places feature integrated into their search and maps, to enable companies to offer discount.
The difference for google this time is the emphasis is not just on the company to set up the deals using an online form. This time to compete with Groupon Google will have to actively work with companies to set these deals up.
The daily-deal concept requires a large sales force, which talks to businesses, sets pricing strategies and plays a role in setting up the discounts. Groupon has 2,600 employees working in sales all of which are by now honed at setting up these deals.
Never one to be left behind now-a-days Facebook also feels it has a role to play in the let’s-get-money-off landscape.
Facebook are going to leverage their “check-ins” feature to enable Facebook deals.
My first reaction to Facebook entering this arena was here we go again. Can’t Facebook leave anything alone? But after a bit of thought, I actually think Facebook has the best model which has the ability to offer something a little unique.
Facebook deals will open up a more flexible discount system, where the likes of a local pub could offer discounts if you check-in yourself and 10 other friends. This boosts sales at local businesses, encourages people to get together to take advantage of the offer and means you can take advantage of the discount there and then. No waiting, noloo signg your voucher and no deal expiring.
I don’t think Google offers or Facebook deals will be the end of Groupon. Groupon has the head-start in this sector and its dedicated to offering the best discounts and that’s it. It’s not trying to be a jack of all trades, it’s just trying to be a master of one.
The size of both Google and Facebook mean they can set up devisions dedicated to their discount dealings. But what doesn’t change and will only get harder and harder as both these giants grow is the flexibility and ability to change and adapt to the market that a smaller company has.
I believe Facebook’s offering is more unique and will prove successful in the long term. But this doesn’t mean the death nail for Groupon as there is room for both. Facebook for the more spontaneous discount deals and Groupon for the more planned discount treats.
The one offering I can’t see coming out on top is Google offers. It wasn’t first to market and it’s just not unique enough.
Maybe you should have bid $8 billion for Groupon eh Google?

There seems to be a common thread in the PR stories spun recently by the tech industry big boys. Microsoft, Nintendo, Apple and virtually all manufacturers of 3D TVs have all come out saying how well their products are selling. It’s strange considering the world economy is only just recovering (slowly) from the crisis we have been experiencing. Consumers still don’t have that disposable income they once did, yet the stories on the wire from the brands behind the latest innovations tell a different story – their products are selling… big time.
The fact that the Wii has now been around for almost 5 years for it to reach this figure is obviously not mentioned. Neither is the fact that it took the Nintendo Wii about two years to pass the 10 million sales mark recently touted by the Kinect. But it’s interesting how Nintendo are coming out with this story at the same time as Microsoft’s Kinect release. Although I would say, Microsoft owe a lot to the fact Nintendo opened up the console market to such a wider demographic. This is the real reason so many of these devices are being sold. Ask a serious gamer and they wouldn’t touch the Wii. Although many people would think it immerses the gamer more through the fact they control the game-play through movement, in reality there’s only a couple of good games that really achieve this, one being wii sports which was released with the console.

Q: What’s the one thing that people fear most?
I’ve just realised I’ve developed a new obsession. It crept up like a sneaky stealth like burgler without me noticing and has started to take over my life. It’s not eating pies – although I have had a fair few recently, I would have noticed the considerable weight gain. It’s not buying new gadgets either – although it is closely related. My obsession is connectivity. Getting all my gadgets connected over my home network. Why is this important? That’s a very good question!



