Google Offers as competitor for Groupon - Google Launching

After spurning Google’s offer, Groupon had to be expecting today’s news. We doubt Groupon would have rejected Google’s offer if it didn’t have a plan for competing with Google. While I admit that is my own hypothesis, Mason has proven more than capable of predicting major technology and business trends. I think it’s a safe bet to say that Groupon is prepared for (and not scared of) Google’s entry in its market.

Groupon :

Groupon also has a huge head start, thanks to its massive sales force, home-grown name recognition and $1+ billion in funding. CEO Andrew Mason and his team have proven that they can outperform the competition, despite having a product that can be easily copied. Google, on the other hand, has yet to prove that it can build a successful social product.

The group-buying giant is also diversifying. It recently launched Groupon Stores, a self-serve deal platform so that businesses can create their own stores. It also released the Deal Feed to combat deal saturation.

Google Offers :

Google Offers is a new product to help potential customers and clientele find great deals in their area through a daily email.

For Google, the daily deals market is all about developing a stronger local advertiser network. Here’s what I said when the news about Google’s $6 billion offer to Groupon first broke:

“If Google goes through with the biggest purchase in the company’s history, it will have the upper hand in local business advertising. That advantage could be so great that the courts stop this acquisition from ever happening. That’s why Google wants Groupon so badly that it’s willing to overpay by billions; if all goes according to plan, the search giant will be flooded with so much local advertising revenue that it will be able to buy a dozen Groupons.”

Google already has a major advertising network through AdWords and AdSense, but it isn’t focused on local. Still, it’s a very good starting point for launching a daily deals business. By integrating daily deals into its advertising network, Google can quickly and easily gain exposure with businesses. In fact, it probably could get enough local businesses to sign up just through word of mouth.

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