Groupon & Google – Clash Of Titans On The Daily Deals Battlefield Begins

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Groupon & Google – Clash of titans on the daily deals battlefield begins

And finally Google, the search engine giant, enters the daily deal industry by launching its deal venture in US in a direct competition to the market leader, Groupon the great, as most consumers know it for its magnificent discounts.

It is an open secret why the Google skidded off its special line of business of digitizing information. In fact, some analysts dubbed the action as a knee-jerk reaction to the embarrassment it heartily felt when Groupon rejected its multibillion dollars takeover proposal. Google offered to buy daily deal site’s operation perhaps in the world.

Throwing out discounts in not less than 45 countries to reportedly 50 million consumers, Groupon is really leading the world of daily deal sites. In spite of that, its refusal to the Google’s offer was firstly seen as an insensible decision. After all, six billion dollar was not a small deal.

Basically, Groupon had its own strengths and guts to rule the daily deal websites. It has yet to suck in the juice from group buying business like its ...
... CEO once said a little market had been tapped as yet.

Besides, the behemoth of group buying industry had taken a smart decision what people had realized later when it divulged its plan to offer initial public offering (IPO) that would likely to generate eye-popping $15 billion to $25 billion.

On the other hand, acquisition is Groupon’s own strategic move for the market expansion. That it recently did in Indonesia by taking over Disdus—the continuation of its buyouts of group buying portals in Singapore, Philippines, Hong Kong, and Taiwan.

Google has its own feathers in its cap. In terms of brand recognition, it has no comparison. The search engine has set the example of paying hefty retention cost to stop fleeing employees in order to keep performance sustainable.

Understandably, clambering gingerly on the bandwagon of daily deal industry that is growing rapidly across the world will prove an opportunity cost for the new entrants.

Experts believed had Google succeeded in buying Groupon, it would have been auspicious for the search engine. US is a lucky market for group buying websites to start with. Especially, with 75 per cent market share held by Groupon in the daily deal industry, Google would have had a good debut.

Still, Google has not lost anything substantial. With a decade of experience and robust infrastructure, it can act alone. Nay, it will highly likely pose cut-throat competition to its sturdy competitor at least in US market where already there are, Local Network Office estimates, more than 320 collective buying sites operational.

Author Bio:
Tariq Saeedi is an expert writer and editor, he has been writing for several online and offline publications. He holds a marketing degree and currently working for Group Buying Website, Dealaboo –daily deal sites

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