Once Again, Big Companies Often Fail When Jumping Into A Space With A Smaller Competitor
from the deals-deals-deals dept
The success (or, at least, the tremendous usage) of Groupon has driven a ton of competition into the market. Though, as we’ve noted in the past, many of the upstart competitors seem to be cargo cult copyists — copying the superficial idea, without really understanding what makes Groupon so dominant in the space. The latest competitor who thought it was easy to copy and discovered otherwise appears to be Facebook, who is shutting down its daily deals business after just four short months.
Of course, back when it launched, many people wondered if Facebook would be a “Groupon killer,” given its larger user base. This is yet another reminder that, contrary to what some people will claim, it’s often not that easy for big players to just come in and copy an idea and take over the market. It happens sometimes, certainly, but it’s a lot rarer than you think. It’s why I’m always amused at people who worry that some big company is just going to “copy” their idea and wipe them out. If a company really understands an idea and a market deeply, it will quickly discover that a superficial copycat won’t have much momentum… which appears to be exactly what happened with Facebook’s deals offering. Big companies don’t always win. In fact, it’s a lot less common than some people will insist.