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Amazon's distribution and logistical network is a major asset that would cost a ton of money to replicate. This is a major barrier to entry and Amazon's primary competitive advantage in the online retail space. Groupon's main advantage (other than being the first mover) is merely a giant e-mail list of customers and merchants, nothing that a scrappy team can't try to replicate on the cheap.


I think you underestimate the cost of a giant e-mail list of customers and merchants that's clean and they have some sort of relationship with.

If for some reason Groupon went under tomorrow, what do you think that asset would be worth? As from my experience with sales, a lot.


I agree it would be worth a pretty penny. But $8 billion? I think not.




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