As soon as it was learned that Groupon (GRPN) had fired founder and CEO Andrew Mason, the company’s stock soared. Investors apparently agree with Mason’s assessment that he was the problem, or, as he wrote in his farewell note extraordinarily public and denominational employees: “They are doing amazing things in Groupon, and you deserve the outside world give him a second chance.’m in the way of that. A fresh CEO you earn that opportunity. ”
In fact, almost wonders Mason was allowed to stay so long. As he wrote: “From our S1 controversial measure our material weakness missing two quarters of our own expectations and a stock price hovering around a quarter of our price list, the events of the past year ½ speak for themselves. ”
He’s right. What is less clear is his claim that his departure paves the way for a revival of the online site. Even if employees are working fine and doing great things, as suggested by his former boss that does not change the reality that Groupon problems probably arise from both its business model from its leadership. From the beginning, it was a great idea that turned out to be very easy to play.
For merchants, the dangers of Groupon and sites like it have shown. Small businesses often were overwhelmed by applicants seeking alienated loyal customers and rarely returned. Large companies, from department stores to hotel chains, have discovered the control logic of their own agreements or work with partners that offer more than just an audience for a big price. And the rest of us? There are only so many half-price offers Thai food can withstand before Groupon emails start to look like spam.
To be fair, Groupon and Mason were no strangers to this. The Chicago-based site has been expanding from just hawking agreements for the sale of things. That has worked well for, say, Amazon.com (AMZN), eBay (EBAY), and countless other sites. Not necessarily a good omen for Groupon, whose success is based on fickle people trying to save money.
In firing Mason, Groupon has lost one of the most interesting things he had left. Like many CEOs buy a pony for their guests, as it did when Mason Michael Bloomberg (the owner and founder of Bloomberg LP majority, editor of Businessweek.com) visited the Chicago headquarters of Groupon? Who tweets about his dismissal with the cryptic: “Apparently, oranges sharing are necessary but not sufficient”? O defends his management saying: “If Groupon was Battletoads, it would be like I did all the way to Terra tubes without dying on my first play through.” We will lose.