Leadership Matters for Group Coupon Sites

In general, in most businesses, leadership of any category nearly always winds up in a highly-nonlinear distribution where 80 percent or more of the revenue, profit or sales is garnered by just a few providers.

It is not uncommon for the market share gap between providers one and two to be extensive. A rule of thumb is that market share of player one is double that of provider two, for example.

It looks like Groupon already is emerging as the number-one provider in the group coupon or social shopping space.

Hitwise: Groupon Is Getting 79% Of U.S. Group-Buying Visits Vs. 8% For LivingSocial