Monday, September 26, 2011

The Groupon Problem

Felix talks about it.  MySpace replaced by Facebook replaced by Google+.  The value added in these companies is being first, there is no technical barrier to entry.

Look how long Amazon took to show any profit, and their margins are small.   However, the Internet is removing the need for Amazon warehouses.   Webbots today can plan delivery from factory to consumer, and UPS can manage the efficiencies of delivery.

Groupon will face standard technology that allows web sites to target local shoppers.  When that becomes commonplace, local businesses will have local web connections to local shoppers.

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