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Groupon Is Growing . . . Simply By Buying Competitors!

Different corporate philosophies lead companies in different directions when it comes to growth.  In the tech sector, research and development has often been an important component of growth.  Even with cutting-edge tech companies, though, rather than invest in R&D, sometimes a bigger company will simply buy a successfully-developed product from the smaller company that innovated it.  Some of the companies that are cash-heavy, but development-light, have taken to buying up entire companies.  That is the tactic Groupon has been using and for the past four months, it has been rather aggressively buying up smaller businesses.

Buying up companies is not a new tactic to either eliminate your competition or to enhance your own portfolio.  Even so, Groupon’s recent acquisitions have the potential to truly change the level of service Groupon may provide.  Moreover, Groupon has more often than not retained the workers at the companies it has acquired, making the acquisitions far less sinister than some similar acquisitions in the tech sector.  Here is how some of the new acquisitions Groupon has made have the potential to enhance the service:

Breadcrumb.  Breadcrumb was working on providing Groupon-style deals through the iPad platform.  The iPad’s larger screen was one of many aspects of the iPad that made it difficult for scanners designed for smartphones to recognize deals on the screen.  As well, some applications were unable to render correctly on the iPad.  Groupon had been working on its own solution to the problem of creating an interface for the iPad.  With the acquisition of Breadcrumb, Groupon is giving up and assimilating the established iPad platform into their own.

Hyperpublic.  Hyperpublic was a start-up that focused on giving developers the ability to make location-based applications.  In essence, Hyperpublic was a developers’ tool.  The acquisition of Hyperpublic by Groupon could imply that Groupon is looking for a way to allow smaller businesses provide deals outside the major markets with which Groupon is associated.  Regardless, Groupon acquired a great deal of location-based information and, presumably, the data Hyperpublic developed on markets Groupon might have been neglecting.

Uptake.  Uptake was a social travel research site when Groupon purchased it for several million dollars in late February.  Uptake had an uncommon analysis method that gave it access to an incredible wealth of travel information that other services were simply not correlating.  Groupon’s acquisition of Uptake indicates the company is working to more precisely target the deals it provides in order to be more useful to merchants using Groupon.

Groupon’s future growth will continue to be influenced by the many acquisitions it is making now.

About RESCUECOM:

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For More Information, Contact:

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315-882-1100

david@rescuecom.com

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