Groupon has seen tremendous growth in the past few years and has achieved momentum that greatly surpasses the growth rate of websites like Facebook and Twitter. The primary reason why Groupon received this kind of attention was due to the discounts and coupons that attracted people to a point that the website received the same stature as LinkedIn or Facebook in half the time. Due to its rapid growth, websites like Living Social etc. have cropped up in order to get a slice of the lucrative Deals market. Despite the popularity of the site it seems that websites like Facebook are set to pose a huge problem for Groupon and prove to be a stumbling block in the their progress. Technically, Groupon isn’t a ‘Social Media’ channel – but the social media networks are important to its growth and reach.
Google and Facebook are in the process of making new offerings to the Daily Deals segment and as a result challenge the supremacy of the reigning King: Groupon. Google is testing its latest, Google Offers, in various areas of United States. Once it’s out of the Beta phase, Google Offers will definitely be a force to reckon with. Facebook Deals, also in the Beta Phase, is already gaining recognition in various parts of the US where it is currently functional. Both Google and Facebook want to take the value of coupons and add a much more social element to it. Not only are these websites highly social, they are also convenient as they allow users to avail of the benefits through their mobile devices.
Groupon is aware of the competition and is making some efforts to redesign their structure. They recently added an element named “Groupon NOW!” which will allow users to find deals that are within their geographic proximity. The next best step would be to allow users share the value of these deals with their friends on the social networks. The Race is on; who wins the race is yet to be seen.