Google Not Strong Enough Against Groupon and Social Living
As a giant IT companies, Google did not seem satisfied just playing on search services.A number of services and other products began penetrated, such as a smartphone operating system (Android) and social networking sites (Google +). Both products are made by Google has managed to attract the interest of users and the rapidly growing market that has been controlled by other companies. Unfortunately, Google Offers services do not have the same luck.
Google Offers daily deals is a service created to rival Google Groupon and Social Living. Service which was launched in May 2011 presents a variety of discounts and product promotion through the sale of vouchers at a price lower than the two competitors. However, Google Offers voucher sales actually decreased by 46% which resulted in reduced revenue by 37%. As a result, overall revenues dropped Google Offers 23% in August compared with the previous month.
In contrast to Google, the leader of daily service Groupon deals have increased revenue by 13% in August. With total revenues of USD 120.7 million in North America, Groupon market share increased 2 points to 53%, while the Social Living decreased 2 points to 20%. Will Google Offers skyrocketed in the middle of the competition is fierce deals daily service or just become one of Google’s services which had “killed”?
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