Posted by: Hana Katen | January 21, 2011

Google Gets Scrappy

While I would not go so far as to say I am a “starving college student,” I definitely don’t have a lot of extra dough lying around these days. Yes, I will admit, this lack of cash could just maybe stem from the fact that I am an, uh, “impressive” impulse buyer to say the least. Somehow, even as the numbers in my bank account continue to dwindle, I simply cannot stop BUYING THINGS.

Yes, I realize this is a problem, but that’s not really the point of this post.  You’ll just have to get over your disdain for my ridiculous shopping addiction for the next few minutes and bear with me.

Many of you have probably heard of Groupons by now: A genius social media/marketing hybrid strategy that offers incredible group online deals to its subscribers…basically the fantasy of coupon clippers and impulse buyers alike. Uh oh. Because of Groupons and Living Social (another group coupon service), my roommates and I have spent a ridiculous amount of unnecessary money on “great deals” that we will absolutely never utilize.

The incredible overnight success of Groupon caught the attention of not only customers, but of competitors…and wannabes.

Our little friend Google, after seeing the explosion of Groupon, decided that it wanted in on this success story. So what did it do? Only what any billion dollar company would: Google tried to buy Groupon for $6 billion. Duh.

And you know what ol’ Mr. Groupon did? Refused it.

Well, Google was not too happy about this turn of events. With an indelible desire to tap into this new market, Google made a game-changing decision: It would launch its own online group coupon service, “Google Offers.”

Because of Google’s wide-spread influence and devoted audience, I believe that the project will be an enormous success for Google, and a devastating blow for Groupons.

At this point, I’m still trying to figure out how I feel about Google Offers. While I think that it is a feisty move on Google’s behalf, I can’t help but believe that this will be good news for (most) customers, and maybe bad news for the impulse buyer truly trying to save a couple bucks.

So cheers, Google, to you being the scrappy dog in the park and to me ‘saving’ money on things I don’t need.

-Hana Katen

Check out this article on Mashable that talks a little more about Google Offers

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Responses

  1. There is no doubt that Google has worldwide influence and loyal diehard users. It is very interesting to see Groupon turn down a bid from an internet titan like Google. There is no denying that Groupon has blown up in the 2 years that the company has been around. Groupon announced in early January that their number of subscribers had grown to 50 million from just 2 million at the beginning of 2010. I do not think that it is fair to say that Google Offers will devastate Groupon, given how many recent failures Google has had.
    For example, “Wave,” A hybrid between email, discussion boards, and chat failed miserably. “Wave” was supposed to be the future of email and really went nowhere. Another recent failure by Google was the launch of Buzz. Buzz was a failed attempt to be the next facebook. Given the overwhelming success of facebook, Google thought that they could attempt to create something better but in reality wasted their time.
    I disagree that Google Offers will devastate Groupon because the foundation that Groupon has built is strong enough to withstand a mega power like Google. Like facebook, Groupon has already established a strong foundation before Google tries to make its move and that is a large part of why Google will probably fail to knock Groupon out or devastate it.


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