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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsGroupon’s CEO writes the best resignation letter ever
This Guy had made some epic bad business moves... But you've got to admit... This is a pretty good resignation letter:
People of Groupon,
After four and a half intense and wonderful years as CEO of Groupon, Ive decided that Id like to spend more time with my family. Just kidding I was fired today. If youre wondering why
you havent been paying attention. From controversial metrics in our S1 to our material weakness to two quarters of missing our own expectations and a stock price thats hovering around one quarter of our listing price, the events of the last year and a half speak for themselves. As CEO, I am accountable.
You are doing amazing things at Groupon, and you deserve the outside world to give you a second chance. Im getting in the way of that. A fresh CEO earns you that chance. The board is aligned behind the strategy weve shared over the last few months, and Ive never seen you working together more effectively as a global company its time to give Groupon a relief valve from the public noise.
For those who are concerned about me, please dont be I love Groupon, and Im terribly proud of what weve created. Im OK with having failed at this part of the journey. If Groupon was Battletoads, it would be like I made it all the way to the Terra Tubes without dying on my first ever play through. I am so lucky to have had the opportunity to take the company this far with all of you. Ill now take some time to decompress (FYI Im looking for a good fat camp to lose my Groupon 40, if anyone has a suggestion), and then maybe Ill figure out how to channel this experience into something productive.
If theres one piece of wisdom that this simple pilgrim would like to impart upon you: have the courage to start with the customer. My biggest regrets are the moments that I let a lack of data override my intuition on whats best for our customers. This leadership change gives you some breathing room to break bad habits and deliver sustainable customer happiness dont waste the opportunity!
I will miss you terribly.
Love,
Andrew
Link m.washingtonpost.com/blogs/wonkblog/wp/2013/03/01/groupons-ceo-writes-the-best-resignation-letter-ever/
BlueStreak
(8,377 posts)Never mind that Groupon was a stupid idea with an impossible business model that only exists in any form today because of a ridiculous amount of hype. He doesn't get that, but it is still refreshing to see somebody speak honestly as they walk out the door.
It is amazing to me that they have been able to sustain this hype machine for this long -- actually getting more than $2B in revenues last year. But it is a sucker machine. The loyalty of merchants is extremely low because Groupon campaigns usually fail to deliver any long-term increase in sales. They can generate a big flurry of initial activity, but that is only because the merchant is selling their product at what amounts to a 75% discount. So Groupon has to keep finding more and more suckers. I bet their revenue has peaked. I have not seen a merchant in my area with a Groupon offer for about 18 months now. I'm sure there are some out there, but not like a couple of years ago.
reformist2
(9,841 posts)I'm 100% sure he would still have his job today if he had been a master BS artist, or at least was willing to go out there and read from the script.
Berlum
(7,044 posts)This is what it is all about. Honesty. Honor. Decency. Integrity. Humility. Concern for others. Dignity.
Free Clue for Republicans: That's the exact same stuff Jesus was always talking about way back when...
Jeff In Milwaukee
(13,992 posts)It just makes them defensive...
Robb
(39,665 posts)Mason cashed out Groupon shares twice before the company's IPO, netting around $28 million, but hasn't sold any of his stake since the company went public in November 2011.
Read More: http://money.cnn.com/2013/02/28/technology/groupon-andrew-mason-severance/
BlueStreak
(8,377 posts)blame the inevitable collapse of this ridiculous enterprise on the next guy.
If you look only at the income statement, he looks like a hero. In 2012, they brought in over $2B of revenue and were very close to breakeven performance. That's a lot better than Amazon did in their early years. So why is he leaving?
Because it is ridiculous business model that only works as long as you are able to convince retailer to sell their product at what amounts to a 75% discount.
The sucker pool is drying up. Groupon has run its course, just like fourqueare. These things are so May, 2011.
The guy is clever. He made his money and now he's getting out before the collapse. Just like they teach it in MBA school.
progressoid
(49,999 posts)Apparently Groupin cost them more than they could make.
MineralMan
(146,329 posts)businesses the idea that people coming to them through Groupon will become customers who return again and again. It's the same principle sold by those coupon books we never really use much of.
It doesn't work. Groupons are purchased by one-time customers looking for a bargain. They didn't patronize the business because they can't afford to. Offer them something at half-price, and they'll come, but once that's not available any longer, they'll go elsewhere, perhaps to your competitor, who also is offering a Groupon.
It worked for a while, until businesses discovered that the number of Groupon customers who returned to the business at other times approached zero.
It is a business model that is doomed to fail. It's not sustainable.
MineralMan
(146,329 posts)She had bought several thing that required booking in advance. One was a fishing trip, and another was a play. We never made it to any of those things, due to issues that came up between the time of booking and the time of the package. We tried to rebook, but most of the things were fully booked at the times we could go. Great prices, but we never ended up using what we had paid for. No more Groupons for that sort of thing for us.