Gustavo Ballvé on November 14th, 2012
Corporate Strategy, Food for thought, Home, Investment Themes, Media, Mental models, Portfolio Management, Retailing, Risk management, Signal or Noise, Tech

BusinessInsider.com has a story on Groupon’s woes (this one is useful too) that reads as an useful summary of why Groupon’s business model is, to say the least, risky. We’ve been discussing group buying companies in the US and in Brazil here (full list of posts inside), and while the endgame here is not as easy to see as some paint it, these companies have been suffering everywhere – even Peixe Urbano, the local leader, has done a large round of layoffs recently.

I really enjoy looking at innovative business models, and the Internet/Social Media realm is a very source of “disruptive” ideas. Caution and common sense still apply, especially when invited to invest in these companies (as per the many IPOs).

Previous posts on Groupon or group buying:

Silicon Valley governance – July 2012

Groupon’s saga – November 2011

Grouponomics revisited – June 2011

Groupon’s IPO filing – June 2011

Group buying in Brazil – May 2011

Facebook and local deals – January 2011

New year’s eve bonus: Groupon – December 2010

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