Wednesday, August 31, 2011

Groupon Doomed by Too Much by a Good Thing

Most of us have probably heard of Groupon, a social media website that allows businesses to post special discounts and coupons to their restaurants. (They boast: "Save 50-90% off!)  Then consumers can look up coupons based on their geographic area.

Groupon exploded onto the scene, and soon became a driving force in local business's "deals" marketing. Groupon started out with an excess in capital, a promising concept, and a good plan for profitability. So how did they post a net loss of almost 120 million?

Even with the case of a large scale company with a large budget, Groupon is a perfect example of how a business should be profitable before they become large. Think about how the same principle can apply to your company, especially if you are looking to expand.

For the entire article, click here.