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Created by : Sachin Sinha, Webmaster, Webex  | 01 12 2011 12:27:05 +0000
Industry : InternetFunctional Area : India(Markets)
Keywords : funding buying crowd
Activity:  55 views;  last activity : 01 12 2011 12:27:05 +0000
a) No clear differentiating factor: There is no stand out and clear differentiator, every clone works in same way, only differentiating factor is location/city they are serving and some clones are justifying the distinction on the basis of numbers of fans in their respective Facebook page. b) No entry barrier - One really don’t need any extra skill sets to come out with one more version of clone, with the help of 2-3 developers and 1lac of investment one can up and run the clone. Absolutely no entry barrier. c) Deals aren’t lucrative - None of the clones are focused on a particular vertical, most of the deals are related to restaurants, weekend package, spa etc. Interestingly none of them are focused on the lines of Nimblebuy, it deals only in electronic items. d) Lean Profit margin - How much margin grouping site makes on each deal? Somewhere around 10-15% is estimated and additionally they would be taking a flat fee as advertising charges from the merchant. But considering that for Restaurants the deal sizes are small and the transaction charges included the margins are pretty thin. e) Feedback - None of the service providers provide or take Feedback for the deals availed by its customers.
 
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No, I have my doubts ! Vs May work but with continuous refinement
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The concept of Group Buying follows the direct marketing approach. It can be easily replicated and clones have erupted from almost every part of the globe. There is no after sales service or feedback mechanism being employed and this will lead to customer dis-satisfaction over a period of time and ultimately customers will lose interest.
By Sachin Sinha, Webmaster, Webex  | 01 12 2011 12:27:05 +0000
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