Friday, December 3, 2010

Groupon Has Won its Category, Real Competition is Media Companies

Many analysts are looking at LivingSocial and the other 200 daily deal startups in the space as the competition to Groupon. Actually, the real threat to Groupon is coming laterally, from established players (newspapers, magazines, vertical sites, TV shows, etc.) who already have audiences in the millions, established brands and in-house sales staff.

As for Groupon’s couponing technology, there really isn’t any. To the extent that an estimated 200 "daily deal" startups have quickly launched in the last 18 months, there is no barrier to entry, except critical mass, which Groupon seems now to have.

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