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Question 1: What happened to the economic fortunes of coupon sites like Groupon? Explain. How does the following quote explain the problem with the business model of the coupon sites? "There are no real barriers to entry, but there are fairly significant barriers to success." What are the problems for businesses using these sites? In your answer explain the problems encountered by Muddy's Coffeehouse, Mississippi Studios & Bar, and 80sTees.Com. What are the complaints of shoppers on these sites? Explain the complaints of Tamara Keodoot.
Question 2: What happened to the stock market values of social media companies? Explain using Facebook, Groupon, and Zynga as examples. What went wrong for these companies? In your answer explain the possible role of a bubble, network (and reverse network) effect, a "half" network effect (the case of Groupon), and migration problems.
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