Updates! Updates! Read all about 'em!

Here’s a quick recap on recent topic discussions…

1.    Google Enters Race for Mobile Payment Systems

Way back when Starbucks announced they were going to allow consumers to make purchases with their Smartphone devices, Google apparently thought this would be a good idea for them to do as well. Stated in a recent article, Google has decided that they too want to join in on the mobile payment bandwagon. Google is planning on installing near-field-communication readers in thousands of merchant locations that will allow consumers to tap their mobile device against a register to make payments. In addition to this, Google is also strategizing to combine all of our financial account information on our mobile device to allow for us to have gift cards, store loyalty cards, and coupons all at our fingertips. This quick and convenient strategy will definitely catch consumer’s attention when it comes to their purchasing decision preferences. And with a big name like “Google”, they are sure to have a successful outcome on this.

2.    Myspace

Well, we all are aware of Myspace current ranking spot when comparing it to the other big players in social media world, like Facebook, Twitter, YouTube, Flickr, etc., - they are at the very bottom of that list. So we asked, “What could Myspace do in order to get back up there?” Turns out that Myspace decided to turn to music. They integrated with SXSW, a music and film interactive site to try and help their traffic. Although teaming with the music industry might help increase their traffic, reports say that the site’s decline is accelerating. So will music change consumers perception of Myspace tune? We shall see…

3.    Facebook New Search Protocol

Recently, Facebook has just been granted a new search patent that prioritizes search results based on the preferences of our personal network. Basically this means that when consumers are on Facebook and want to ask one of our friends their opinion on something, like ratings on specific restaurants, bars, events, purchases, etc. Facebook will automatically replace asking your friends, but rather than “friends of friends” or even “friends of friends of friends”. This kind of word-of-mouth, will limit online searches, for Google (as an example), and increase the activity on Facebook. Like everything, this replacement strategy of searching for results has its pros and cons. For the consumer, asking a question to someone who fits your profile standings is great because you will have someone who in a sense is “like” you answering a question, but on the other hand this may limit your choice options. Asking a friend of a friend for their personal opinion may be great, but they may also be telling you something they know you want to hear.

How Much is Groupon Really Worth?

Last November, coupon firm, Groupon made big headlines when it was reported that they turned down a $6 billion offer from Google. Many were shocked that Groupon didn’t take the cash and make a run for it, after all it was Google and it was 6 Billion dollars! They apparently believed they were worth much more, and good thing they did. In just a short four months Bloomberg reported that Groupon is talking with banks about an IPO of potentially $25 billion. Talk about four times the profit! 

But the question of the hour stands – Is Groupon really worth $25 Billion? With everything pertaining to the social media world, perception is key. If enough people believe Groupon is worth $25 billion, then it will be. The more money that is spent towards Groupon by consumers, the more valuable the company will become. Realistically speaking, this coupon firm has the potential to grow even more if they wanted to. If they were to segment themselves out to various geographic markets, they will give their company that competitive edge over the other smaller companies with similar business models. Although some may believe that small businesses wont be competition, you would be surprised by the amount of damage they can possibly do. Smaller businesses are more capable of offering what Groupon offers at half the price to local retailers, potentially obtaining a vast amount of the market share. 

Alternatively, Groupon can also get affected if leading competitors like Google, Facebook, or Amazon decide to take on Groupon and offer the same kinds of services through their company. If any of these big players decided to take on Groupon, they will most likely dominate the scene. It is all about the name in this kind of industry, and these players have already established themselves.

So whether it’s a small business taking Groupon on for their money, or a larger one like Google completely wiping their presence off the scene, Groupon has a lot to consider. But first, I believe they should consider whether or not they would want to take Google up on their $25 billion offer.