Sunday, December 12, 2010

Issues with Online Privacy

More and more people surfing on the Internet are now worried that their information is being tracked, used and shared without being aware of it. Often the information of an individual is being used by marketers so they can more efficiently target their advertising to each person, by studying their habits and behaviors. But how can this be controlled and regulated?

The Federal Trade Commission came up at the beginning of the month with a framework of recommendations to protect consumer's privacy on the Internet. According to the report made by the FTC, data is sometimes collected in an unclear and irresponsible manner. The FTC is calling for more ''reasonable'' security, access and procedures; but what would ''reasonable security'' mean in that context? When reading the proposal it seems that first the FTC is only focusing on current issues and not projecting into the future; but mainly from my point of view none of those recommendations are really going to solve the problem.

One interesting recommendation brought by the FTC is the creation of a Do-Not-Track option; which would allow the consumer to refuse the collection of their information for targeted marketing. Even if the idea seems attractive, I don't believe it would necessarly be a good idea. First does that really mean that your information will not be used? This would be hard to believe. Also are companies going to be willing to follow this recommendation, considering the potential for sales increase using behavioral marketing? Ideally, there should be a compromise between the consumers and the companies on this issue, where there would be more information protection for the consumer; but also enough information available for the companies to operate effectively.


Sunday, December 5, 2010

Groupon Better Off Alone?



Groupon, a ''deal of the day'' website with growing popularity has just reportedly rejected a $ 6 billion offer by Google. It's CEO Andrew Mason is obviously aiming to a higher level of achievement and maybe wanting to follow the steps of Facebook, who also rejected acquisition offers in the past and is now worth $ 40 billion as an independent company.

According to Forbes, Groupon is amazingly the fastest growing company ever, accumulating $1 billion in revenues before its second year of existence. The company has proved to everybody that it is viable and very profitable as a business model; it has been able to attract more costumers than its competitors (LivingSocial being the main one); and in a continuous way. Groupon was able to acquire and maintain a strong brand name; which is one of its most powerfull assets. 

Refusing a $ 6 billion offer by Google might seem to be a risky bet from Groupon; especially considering the growing number of possible competitors in the market. However, this clearly shows that Mason believes in the potential of his company and has greater expectations than its competitors.

Groupon's choice to stay independent is from my point of view a great and exciting bet, especially if they continue growing at a similar rate; but they will have to find ways to stand out even more from their competitors if they want to stay on top.