Online Privacy Seriously Lagging

The immense growth in technology and online social media, marketing, and communication tools has led to the proliferation of privacy problems and issues. One only has to access an individual's Facebook or MySpace profile to learn both the most common and clandestine details about him or her and unfortunately, with other online tools and products, such as search engines, online billing, and retailer websites, the amount of information mass conglomerates have gathered about consumers and individuals is both disturbing and irritating. To combat the online privacy issues, the Federal Trade Commission just recently advocated a plan that will allow consumers to decide whether they would like their Internet browsing and buying habits to be monitored. The report recommends having "reasonable" measures for promoting data accuracy, "reasonable" access for consumers to the data collected about them, and most importantly, an option that would allow consumers to "opt-out" of tracking and data collection.  Implementation of this new plan would have serious implications for both consumers and online advertising companies, namely Google, Apple, Yahoo!, and Microsoft amongst others. Online advertising and data collection companies stand to get seriously hurt if consumers are granted the option to opt out of their data collection and tracking mechanisms.

And as for consumers and business, what defines "reasonable" varies substantially. The mere thought of Google allowing access to a meager 10% of the data it has collected about me is a long-shot and highly implausible. Notably, Microsoft took measures into its own hands and announced that "it is going to add a "Do Not Track" feature to its Internet Explorer 9.0 release, so that users will have the option of preventing cookies on their browser from tracking what websites they visit." Microsoft's move to implement this sort of feature is quite clever; by implementing this feature before any serious legislation is passed making such options mandatory, Microsoft is making itself look like the "good guy" and setting an industry standard that others will quickly follow. It’s a bold move in an attempt to protect them against the potential stringent privacy regulation that the FTC might implement. I wouldn't be the least bit surprised to see other online giants following Microsoft's witty step.

The FTC's step towards implementing a plan to combat the comprising of personal data online is a good one, but will it really work? What if online companies take their own personal steps to show they are willing to abide by such legislation only to deter lawmakers from making it compulsory? The growing online privacy debate has sparked numerous comments and concern from consumers and companies alike. Consumers need to much more vigilant and cautious about the content that they post online and make available for the entire world to see and many consumers are still careless about their privacy and personal information while browsing online. Any photos, postings, and personal information can be quickly and easily permanently stored by complete strangers and even sent to remote locations anywhere in the world. Even with the FTC's proposed plan and "do not track" options, many individuals will continue to remain naïve and allow everyone to know everything about them. Hopefully, the FTC's plan can put an end to online privacy breaches and simultaneously prevent future online privacy problems from surfacing.

Groupon + Google = ?

The rise and emergence of Internet has not only led to social networking and media but it has also triggered the launch and expansion of various businesses and industries that thrive and function primarily due to the Internet; examples including online retailers Ebay, OverstockNewegg, and Amazon and some more unique yet surprisingly successful online-based business that have been very lucrative for the creators,  including Zappos, Santa Mail, and FitDeck.

One of the newer online businesses that have recently taken millions of consumers by storm is Groupon. Essentially, Groupon works with local businesses to offer a 'group coupon' to registered users if a specific number of users sign-up for the deal. Groupon works quite well for local businesses by granting them sales, traffic, and potential regular customers while Groupon users that sign-up for the deal enjoy substantial cost savings, and Groupon enjoys a portion of the revenues generated by the offer; it's a great trade-off trade-off for business owners. And not surprisingly, Groupon is not alone in this marketplace, competitors include LivingSocial, BuyWithMe.com, Tippr and the market place is heating up with Amazon investing $175 million into LivingSocial and Google's $6 billion offer for Groupon.

A Sample Groupon offer; Gourmet Donuts Anyone?

There are several reasons why the Groupon business model is successful, notably the benefits for both consumers and business managers; the mutually beneficial exchange relationship commanded by marketing. But with the technology's speedy pace of change, there is no doubt that Groupon will have to mold its business models to match the demands of consumers and business managers alike, whether it be offering specials that focus on user wants or expanding Groupon to other areas and levels, whether it be groceries or deals with larger businesses and franchises. Groupon users do not pay any membership fees but perhaps this feature needs modification.  The ease and inexpensive entry barriers are yet additional constraints that the Groupon business model must combat. Groupon could potentially acquire or merge with other companies in the industry but even then, Groupon could quickly be replaced with another innovative and successful model that we can't even perceive yet. Five or six years ago, I never thought that toolbar advertising and search engines would be so widely used and profitable, and I don't think I'm alone. Groupon, however, could very easily be the future of commerce!

One way Groupon could potentially gain that elusive sustainable and differential competitive advantage is by offering deals and specials that are personalized to the users and notably, I believe this to be one reason why Google has so much interest in Groupon. The amount of information and data that Google has acquired about its users is frightening and raises privacy concerns but Google could very easily take the user and local business information that Groupon has and use it to evolve newer and more desirable offers for consumers and business owners. Google is known for its creativity and brilliance and by integrating a user's Groupon profile with the rest of his or her Google accounts and subscriptions, Google will only become more powerful and that isn't such a good thing. Like Google, Groupon currently outshines its competition but without adjusting its model, Groupon could easily lose market share and fade away. Competitors like OpenTable pose stiff competition for Groupon and factors such as regular clientele and lower expenses might lure business owners to opt working with one of Groupon's competitors. Groupon may very easily just be the latest consumer fad and quickly be replaced with a newer, more consumer-savvy online discount service, which makes Google's $6 billion even more valuable; selling seems like the best option for Groupon but who knows, perhaps Groupon's business model is just the underpinning for an even more compelling and flourishing business model, only time will tell!