Facebook introduces Deals

By • Apr 29th, 2011 • Category: Blog

Facebook has introduced the new “Deals with Friends” feature that allows users to browse through discounts and deals from local businesses, and allows them to share these deals with their friends. Currently, the Deals with Friends feature is available only to users in Atlanta, Austin, Dallas, San Diego, and San Francisco.

The success of group discount sites such as Groupon and LivingSocial has of course prompted Facebook to introduce its competing service. Even though it’s a little late to the game, Facebook can still capture a very respectable chunk of this new market thanks to its massive user base and its brand strength. In turn, this could be bad news for group discount sites like Groupon and LivingSocial. While they have an entrenched presence in many major cities in the U.S., Facebook will soon extend its “Deals with Friends” to more cities and can offer a better marketing edge for local businesses thanks to its larger installed base and recognizable brand, making it harder for smaller competitors to gain access to local businesses. Still, this is symbolic of the creative plateau at Facebook. It seems that they’re no longer able to come up with innovative ideas, and instead are settling on strongarming their way into new markets established by successful and innovative startups.

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