Next innovation in Group buying
October 20, 2010 Leave a comment
Groupon is the undisputed king of group buying wave that has hit the internet recently. A lot o clones have popped up, including some aggregators, and I was thinking about some additional “group buying” ideas.
Lets do a quick SWOT analysis for Groupon:
Strengths: Brand, First-mover-advantage, Good financial backing, scale, good customer satisfaction
Weakness: Low barriers to entry, Low switching cost for users, Limited revenue (1 sale/day/city)
Opportunities: Build barriers to Entry, Make Groups, Develop features to increase the switching cost, Diversify into commenting (like Yelp), Diversify into Local advertising (or branding)
Threats: Multiple competitors, Niche competitors, Yelp could be a competitor (with groupon type feature), Expansion beyond a threshhold is not scalable
I am looking at opportunities, and it leads me to think about a new product/website/feature:
1. Let people start making groups around local businesses
2. If the group reaches a limit, then the local business gives discount (50%)
3. It will be time bound-as well as-number bound (maximum 50)
4. Multiple groups can be formed at the same time.
So, this will be a pull-based mechanism rather than groupon’s push-based sale. It could be quickly implemented as a Facebook app. Lets see how people react to this.
What do you think about this product? If interested, then let me know if you want to discuss more about it. There are some other salient features that will make it a compelling product.