votrechien - 3:25 am on Jun 6, 2011 (gmt 0)
first of all, once again another "north america only" business. don't give me that "what comes from america rules the world sooner or later" thing. if you want to have global success, act globally. so far, there's no demand for the service outside their home country partly as a consequence of ridiculously bad business execution. groupon didn't get the foot in the door, despite buying up the local first movers. you only get one chance to make a first impression. probably it's already over and done in many foreign markets.
I agree with most of your post but the Groupon model has been thriving in other areas of the world including Europe and even China.
With that being said I think the business model is completely unsustainable. Right now there's a lot of glamour for businesses wanting to try Groupon. It's a new marketing medium and relatively risk free. A lot of businesses will try Groupon just to be able to say they tried Groupon. That luster will fade over time and it will make the sales job all that much harder. Not to mention, each geographic area only has so much supply.