My Computer Forum Computer Science Forum

Go Back   My Computer Forum > Web Development Forum > Internet

Internet Latest industry news and happenings


Reply
 
LinkBack Thread Tools Display Modes
August 26th, 2011, 02:06 PM   #1
Site Founder
 
julien's Avatar
 
Joined: Dec 2007
Posts: 414
Groupon going bankrupt ?

Do you believe the new internet giant Groupon will go brankrupt before it can even go public ? Seems like their business model is bleeding cash (excessive marketing costs). The article http://techcrunch.com/2011/06/13/why...-for-collapse/ gives some background on the case (which starts popping up a little everywhere on the web).
julien is offline  
 

My Computer Forum is free to register and we welcome everyone!

October 24th, 2011, 09:08 PM   #2
 
Joined: Oct 2011
Posts: 7
Re: Groupon going bankrupt ?

Naa it was all BS because it made for good headlines to go against the fastest growing company to $1 Billion.

The real story now just came out showing that all the money that Groupon spent on user acquisition is now paying off, because they are now spending less and the people they paid for before are now buying enough Groupon's where they are making a profit on the cost that it took to acquire them.

“We pay a fixed amount up front, and we recover our marketing costs in two quarters,” explains Mason.

http://techcrunch.com/2011/10/21/the-on ... -focus-on/

Check it out.
Regal is offline  
November 13th, 2011, 04:04 PM   #3
Site Founder
 
julien's Avatar
 
Joined: Dec 2007
Posts: 414
Re: Groupon going bankrupt ?

Seems like Groupon's IPO went well indeed ... let's see in the coming month whether their share price will hold well. From what I see, this kind of business is not very sustainable for the suppliers (they cut their margins in order to acquire customers which won't necessarily be repeat customers since they're so price-driven + such customers usually post negative feedback about the service they have purchased because they weren't really looking for such a service ... they were just hunting for "bargains").
My guess is that share price will go down in the next few months (this doesn't mean that we're in a tech bubble again, though ... or are we ?).
julien is offline  
February 29th, 2012, 12:04 PM   #4
 
Joined: Feb 2012
Posts: 15
Re: Groupon going bankrupt ?

That's a hoax. I don't think it will ever go bankrupt 'cos its the "IN" thing today. People are thrilled with discounts and I believe this is one of the many ways to save.
coffeemonster is offline  
Reply

  My Computer Forum > Web Development Forum > Internet

Tags
bankrupt, groupon



Thread Tools
Display Modes






Copyright © 2017 My Computer Forum Forum. All rights reserved.