Articles like this are not good for any company, but especially for companies that has been scrutinized as much as Groupon for it’s unusual accounting metrics, because it raises the question is its business model flawed. My motivation for bring Groupon’s woes up is in the interest of bringing up a larger issue that circles the online business community. The dot com boom had every leader cramming for eyeballs not profitably. We saw a bust happen because of it. Now revenue has become the issues for them and that is where Groupon is struggling.
On this episode of TPN Finance, we discuss how measuring profitability is the key evaluation criteria for a business.
We also discuss several businesses which chose an online only strategy and why would companies choose to solely run on that domain instead of storefront.
