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?

The launch of facebook places is not only significant in the fact that it shows as a company facebook is continually developing and looking for ways to expand it’s platform, but it is also significant in the fact it shows they can take any new idea which has been thought up by them or not and integrate it into facebook to open it up to the largest community on the web.

Facebook places is a way for users to “check in” to locations so their “friends” can see where they’ve been. Users can also add notes against places so their friends can see what they thought of it, what deals they may be able to get there etc, etc… just general info.

All in all, a good idea. Yes. But not an idea of some bright young developer within facebook HQ!

This idea happened to be the brainchild of Dennis Crowley who was named one of the “Top 35 Innovators Under 35″ by MIT’s Technology Review and Naveen Selvadurai.
This pair launched foursquare in march 2009 and now has over 3 million users.
Now, 3 million users all of a sudden doesn’t sound like that many. But that is only because of the monster that is facebook. The majority of websites would be more than happy and may even open a bottle of bubbly at the fact they’ve attracted 3 million users to their website.

The point here is that facebook can take any new idea, such as foursquare, integrate it into facebook and instantly expose it to an audience far greater than anyone else can imagine.

Therefore facebook faces no competition.

Although foursquare’s user base has apparently risen since the launch of facebook places, this will surely not continue. I can only guess this is due to the fact people are now more aware of the concept of “checking in” and are therefore searching for this and discovering foursquare.

Apparently facebook have been developing this for 8 months, so it took them only 9 months to track foursquare’s growth and decide to copy it’s idea.

It’s a shame, but I really feel we won’t see a new successful concept independently run, not integrated into facebook and grow enough to compete with the social giant.
It’s also a shame that more people hadn’t discovered foursquare first. As the 497,000,000 users that are members of facebook and not foursquare will think – cracking idea facebook… Well done.