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Showing posts from August, 2012

Groupon is Not A Tech Company

Tl;dr A tech company is a company who's business model centrally relies on addressing a problem with a unique or novel technological solutions. Groupon's use of technology is incidental to its business model. 

I was reading this article today in Wired about how Groupon's stock fall-off is sharper than other "tech giants." While that is interesting, I think it is incorrect to call Groupon a tech company, and, accordingly, I don't know that it is quite fair to compare Groupon to tech companies. This is in no way a judgment on the quality of Groupons services, the dedication or talent of their team, etc. They executed well and have many very satisfied customers; that alone is praiseworthy. However, Groupon simply is not in the tech business: They sell coupons, en masse. That's it. Doing so did not require any technological innovations, either in software or hardware, and that is why their model is infinitely replicable. This, in fact, it its primary weakness…