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Post by Swampy on Feb 28, 2013 23:16:03 GMT -5
And so is Zynga. The economic landscape is changing very fast, and those that were cool only a few years ago are on their way out - those like Groupon. |
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Post by Sir John on Feb 28, 2013 23:31:17 GMT -5
The joys of the free enterprise, capitalist system.
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Post by Swampy on Mar 1, 2013 0:02:08 GMT -5
I don't know if you're being facetious, but there are two ways of looking at this.
One the one hand, the joys of capitalism does allow for companies to die off if they're not competitive enough; on the other hand, as we're seeing, the brutal worldwide competition has decreased wages and caused the current economic crisis.
I've been thinking of this "other hand" for the past few weeks, and I'm suddenly concerned as to what will happen if China collapses along with Europe.
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Post by mcnoch on Mar 1, 2013 1:01:33 GMT -5
Groupon never had a good product for those companies who wanted to promote their services via Groupon as Groupon was pushing for too much volume in each campaign; so the company customers made one campaign and never again. So Groupon burned its company-customers more rapidly than new could be acquired. They lived from the hype, but their bad product hiding behind it became very visible in the recent year. And as the response from the companies was so negative and they felt cheated, their customers coming via Groupon got a negative response and bad service too and were told what Groupon is doing to those companies and so the private customers got a negative feeling about Groupon too.
Zynga was offering real products, which caused no economic harm, except that people wasted the time with it. But that is okay, now that they became bored by the always similar scheme of games, they waste their time with something else. Zynga struggles because of competition from similar products - normal business life - and the point that the people have satisfied their demand in such games and reducing this, so the market is shrinking.
For Groupon I hope the time is over soon, Zynga has to find a way to focus their reducing resources to their top-seller and try to bring up new products that can win new customers in a shrinking market, else it will be soon be gone too and the surviving competitors will take their share.
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