$5.3 billion is an astronomical amount, plainly is it worth the hefty price for Google to spend on a popular deal-a-day entanglementsite? Groupon, or the Chicago-based e-commerce site, delivers effortless discounts and promotions from topical anaesthetic tradees to 30 million users across 500 markets in 30 countries. With the given statistics, it is obvious that this particular site is tar fetched by multi-million dollar companies. In contrast, some analysts find Googles convolution absurd. In entrap to defend against this dispute, the article provides 3 reasons as to why Google thinks Groupon is worth every penny.
Google is known for dominating the web activities through its reli adapted search engine, having a solid social function technology, and optimized local results, but Google lacks the local sales force that Groupon has. The premiere reason why Google wants Groupon is simpleâ€"many users. Just calculate how Groupon can benefit Google by boosting its currently existing geo-social graph, and the probable of having direct access to merchants around the world. The second reason is to close off the competition. There were numerous attempts from other companies that tried to acquire Groupon, but the competition for heapential (according to Groupon) deserved more.
Groupon playing hard to get will only last for so long, so it is a matter of time they will sell when they find that the pot is sweet enough. If Google were to take over Groupon, Google will be able to take Groupons (already and increasing) engaged user and local business data. And with those two combined with Googles exhaustive local information, they strength finally break free from their limited value of their local efforts. Lastly, acquiring Groupon would give Google instant taxations. Groupon reportedly pulls in $50 million a month in sales, and has an expected entireness revenue of $600 million by the end of this year (2010). The revenue is not what Google is aiming for, but the consistency in customer joy and Groupons torrid...If you want to get a full essay, order it on our website: Ordercustompaper.com
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