Tap, Pay And Save! Will Google Offers Put Groupon Out of Business!? — The Digital Hideout —

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Back with the analysis of the current situation on the possible clash between Groupon and Google! Is there anything that could stop Groupon from dominating the discount-offer market ? Is there a firm that has enough resources to stand as a legitimate threat for Groupon ? The answer is indeed.. Yes

As it was debated in the previous post, Google could be the one to challenge Groupon in the long-term. Given the availability of their newly introduced service (that is currently under heavy testing), Google Offers and the introduction of their other related service Google Wallet, the Internet giant could merge the two services, hence providing a unified solution for all that do not favor Groupon. But what is the big opportunity behind the integration of Google Wallet and Offers ?! Why would it be better than the already established (and highly successful) Groupon model?

Firstly and most importantly, the biggest selling point for Google Offers could be the possibility to receive integrated services through the capabilities of Google Wallet. As opposed to the Groupon method, where coupons or bar codes have to be printed out, Google Wallet could put complete offers into the user’s GW account, without the need to print. Not only would users be able to deal with all the transactions on their phones but also would they be enabled to access all previous information about their GW activity on their personalized accounts. Using Near Field Communication to utilize these offers could be one of the major advantages of Google over Groupon. Imagine that you can browse among, select and even purchase discounted offers just by a touch on your smartphone… Life would indeed be easier and more integrated that way. To give you a practical example, imagine the following…


Google is currently offering a $3 deal worth $8 at your nearest Starbucks Coffee Shop. In spite of having the hassle to print and carry a coupon to present it to the merchant, GW enables you to store all the information on your phone and make use of the stores compatible NFC register to effectuate the offer.


Google also thought about enterprises.. :

The fact that  -as opposed to the Groupon model- Google does not plan to charge the customers with additional fees such as the fee of transaction between customer and merchant or the cost of the application (free application) also supports the assumption that the unified services of GW and GO could indeed put Google into a better market position. Not only Google has a superior service package but also they could be able to take advantage their extensive network of resources (merchants) due to their Install Base from customers of other services such as Adwords, Adsense and so on…

It is still a long way until one could predict the outcome of this particular battle for the online bargain market leadership position, however with Google claiming a dominant place the fight has indeed been intensified. Given the capabilities of both firms, it will be interesting to see what resources are they willing to put into the battle to triumph over eachother… One thing is for sure … if it comes to fight between internet giants, the consumers always benefit from it. Innovation and industry competition lead to better delivered service and more sophisticated offers. As a customer, we could be happy about the recent development of the market as it will surely be a key factor to attract more customers with better satisfaction rates.

As you might have recognized, there has been no discussion about Facebook in this issue. As a matter of fact, Facebook also engaged itself with the development of its own online bargain service, however the project is still in the initial phase. Once it develops, we could witness the ultimate competition between the 3 giants of the industry. Not only will it be historical but also crucial for the whole development of the “league of internet leaders” .. Whoever can claim the victory on this field, will be one step closer to any internet firms ultimate goal.. Controlling the gateway in every possible channels of the digital life…


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