Sorry!! The article you are trying to read is not available now.
January 23, 2013 at 08:00 AM EST
Why Groupon May Hold Leverage over Amazon - Research Report on Groupon, Inc. and Amazon.com Inc.
There are countless issues surrounding the online industry of sweet deals and cheap thrills, but the competitor between Groupon and Amazon has sparked some interesting developments

NEW YORK, January 23, 2013 /PRNewswire/ --

Groupon, Inc. (NASDAQ: GRPN) [Full Research Report][1] added fuel to the fire after it bought CommerceInterface, a provider of e-commerce management solutions to companies including Amazon.com Inc. (NASDAQ: AMZN) [Free Research Report][2]. The deal is partly an effort on Groupon's part to advance in the competition and to closely bid against Amazon's online retail and coupon business.

CommerceInterface is vital to web-based companies by enabling its merchants to optimize the aggregation of goods from multiple vendors on an e-commerce platform. By purchasing CommerceInterface, Groupon is set to become the sole beneficiary of the channel management technology that Amazon heavily relies on. Amazon and other companies that are benefiting from the sales process management technology are given until the first half of this year to transfer to another provider.

Groupon's acquisition sums up their plan of expansion. The company has a good chance at improving its business and becoming safe for investment, but there remain several challenges ahead. Amazon, with its tremendous pipeline, has the potential to become the heavyweight competitor Groupon fears. However, despite Amazon's relatively young online coupon business after purchasing LivingSocial, there seems to be no vindication for Groupon.

Groupon's Strategy and Opportunity

One of the reasons why Groupon purchased CommerceInterface could probably be its market strategy. With the help of CommerceInterface, Groupon can reach international segments. Thus, it gives them the opportunity to increase revenues and expand to new markets. This may be good news for investors, but the company's competitive advantage does not seem to be making an impression on analysts and investors. There have been a lot of sentiments surrounding Groupon, one of which is to oust its beleaguered chief.

Meanwhile, analysts and investors' bullish view toward Amazon will hardly change as the company was recently upgraded to outperform. Amazon never showed any sign of uncertainty or agitation and the company does not consider Groupon as a threat. As for Groupon, the company must utilize its recent acquisition of the coveted CommerceInterface, go back to basics and explore the market just like a start-up business. Spending time to consider current and future trends of the market and its economic place within its target markets may just earn Groupon its much-awaited salvation.

Reference Links:

[1]   The Full Research Report on Groupon, Inc. - including full detailed breakdown, analyst ratings and price targets - is available to download free of charge at: [http://www.nationaltradersassociation.org/r/entire_report/2044_GRPN]

[2]   The Full Research Report on Amazon.com Inc. - including full detailed breakdown, analyst ratings and price targets - is available to download free of charge at: [http://www.nationaltradersassociation.org/r/entire_report/6d6b_AMZN]

Consider National Traders Association

Tired of hearing about the latest, greatest trade opportunity... only to realize that the ship has long sailed? You need a strong, informative community in your arsenal. Join the group that has been consistently identifying momentous situations as they develop -- long before they become the next top news on major financial networks.

Contact: Demi Lapierre
Email: press@NationalTradersAssociation.org
Main: +1-(702)-212-4493

SOURCE National Traders Association

Related Stocks:
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here

WHAT'S POPULAR IN THE VILLE