Facebook Social Deals May Be Groupon’s “PointCast Moment”

Will Groupon regret not taking that Google offer?

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Facebook Social Deals May Be Groupon’s “PointCast Moment”
[ Business]

A new offering called Facebook Social Deals was launched in five cities today. It’s a service similar to Groupon or LivingSocial, where merchants offer highly discounted, time-sensitive deals to their customers. The product is well-integrated with the overall Facebook experience, it’s not intrusive, and it has sociality built-right-in, enabling individuals to not only buy deals, but also promote them to their networks using other familiar capabilities such as the Facebook “Like” button.

It may be a mortal blow to Groupon, the current leader of the daily deals pack.

The illustrative example here for Groupon may be a company from Bubble 1.0 called PointCast. PointCast was the hottest property on the dotcom block, and had been the target of a $450 million buyout offer from News Corp in 1997. PointCast, certain they were on to the Next Big Thing, spurned the offer (not unlike how Groupon rejected Google’s $6 billion offer just a few short months ago).

Shortly after PointCast rejected the News Corp offer, it fell out of favor with customers, suitors and investors, and went into a corporate death spiral from which it never recovered. After being valued at almost half-a-billion dollars, PointCast was sold a short time later for a mere $7 million bucks.

So, what do you think? Does Groupon have something that’s so unique and valuable that it can withstand the Facebook onslaught that was launched today? Or are they about to get slaughtered?

Originally published on The Social Customer Manifesto

Facebook Social Deals May Be Groupon’s “PointCast Moment”
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  • http://webpronews.com Susan Coppersmith

    Groupon should of taken the deal! More and more competition everyday! Very serious competition.

    I have to say that LivingSocial has done a great job with their branding campaign… LivingSocial is becoming a household word.

    Susan Coppersmith

  • Kamakshi Sri

    Competition is a very important component of every business that does not mean that businesses should surrender to be acquired by someone doing good in the field. Perseverance gives out results. GroupOn would not necessarily repent for refusing Google as is most thought of. I agree that new dailydeal projects are being introduced by other sites but every corporate always has a certain percentage of loyal customers that do not want to switch away from it despite the fact that other daily deal service providers are available. There is always a strategy to deal the competition though being outsiders we are not aware of it now.

    And you are forgetting a very important word ” goodwill” that still stands in favor of GroupOn as compared with FaceBook. FB may be having milions of users for some or other reasons but the ownership of facebook is still in darkness. When Google, Bing and Apple are being sued for patents or privacy infringements, FB, sarcastically, is something very much different from all these and is being sued for ownership?

    GroupOn can easily make through if it comes out with new offers, prompt service and support for customers. These will help it in increasing its customerbase by retaining old customers and fetching new ones. Just only a careful strategy is required.

    It may not necessarily earn the amount offered by Google but it will succeed in retaining its own identity and that is most important because the question of decent living and indecent living comes when one is alive.

  • http://tiny.cc/yzwq2 Atlanta Roofing

    Facebook Deals is going to be a new way for everyone to save money soon enough. I think their starting run is going to go great for them.

  • http://www.neediff.com Prasad

    This new deals from face book will definitely hits success because Facebook has already got first rank in social network sites so this new deal is really fantastic and very useful to consumers so registrations to facebook site will grow be very high automatically facebook users will gain with this deal.

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