Wednesday, 16 May 2012

Giant Groupon versus Behemoth Clones

Groupon, the deal-of-the-day website, is a household name at present. There is a fair chance that some of your near and dear one might be availing some sort of services through the very website. If there are still doubts about its giant stature, let’s put in some facts; in April 2010, the company was valued at $1.35 billion and boasted of 35 million registered users in recent past. Now, this much is enough to realize the potential of daily deal websites. But the topic here is not glorification of Groupon but its collision with another behemoth. And the rival, as stated in the title, is a Clone.

Groupon clones flourished when people realized the potential of this business model. Those who don’t know, Clone of Groupon is a similar seeming website which offers deals to its customers in one or multiple fields. True that Groupon serves 500 markets and 44 countries but the fact is that it is less than 25 percent of the total countries in the world. Also accepted the fact that the company is expanding at wildfire pace but clones too are not lagging far behind.

So, the question that arises from this is;

Who has better chances of survival and winning the race in the long term?

Well, to speak the truth by now, saying something with complete certainty would only mean making things up. Thus, better put the facts and leave the judgment to the public.

Groupon’s Competitors

If word from the specialists is to be believed, Living Social is considered as the biggest competitor of Groupon. However, there are more than 500 sites or we should say, clones operating in the living social deals market. Though, the news of gulping clone websites with potential to be future competitors come out on regular basis, the number of clones is still growing.

Flop IPO Show and Accounting Hassles

Quite recently, Groupon came out with its IPO but the party was gate-crashed by reports of flaws in the financial accounting procedures of the company. Groupon reported the loss of $9.8 million in the final quarter of last year. This raised serious questions amongst the investors about the future of the company. But it seems that the company has made enough money to sail through troubled waters.

Pros of Clones

The total number of clones operating in the market might not be known, as new websites are coming up every day to cater to customers. Most of the websites work on the principle of best daily deals and thus have their share of loyal customers. Segregation and different management control makes every clone unique. Therefore, every clone has the potential to emerge as a future leader. Moreover, such websites have better understanding of their respective markets and thus function better. The only drawback is that such websites need to work extra hard to make space for themselves.

Final Verdict

Well, verdict, as aforementioned, has to be given by public only. So, who do you think have a better chance of survival; the giant Groupon or behemoth clones?

About content owner- The digital work is the property of FATbit Technologies. Apart from being active in content, web designing, reputation management and SEO, the company has also developed daily deal aggregator script that has been hailed as one of the best in the market.