Tuesday, March 15, 2011

Facebook Is Not Ready to Take on Groupon: Tech News and Analysis « [GigaOM]

Check the article link below for more Facebook/Groupon analysis

Facebook could be a huge competitor in the daily deals social shopping space. It’s the most popular website in the U.S. and could tap its fast-growing community to compete. As my colleague Mathew pointed out, (subscription required) Groupon really didn’t take off until it combined shopping with social. Unlike Groupon, which leveraged Facebook, the social network already has an established relationship with its users. Facebook recently said it was testing a new feature called “Buy with Friends,” that allowed users in social games to share their virtual purchases with friends, who could unlock the same discount. At some point, if Facebook puts it all together — location, deals and social sharing of discounts — it could be a powerful way to build relationships and loyalty between merchants and customers.

But having said that, this new effort by Facebook doesn’t appear to be a true competitor to Groupon or Living Social at this point.

Facebook Is Not Ready to Take on Groupon: Tech News and Analysis «

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