Everything you sees Alibaba in Groupon, others missing

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While dumping investors Groupon GRPN-7.24% 's share in recent months, Alibaba group holding (NYSE: BABA) the market for a few dollars each.

Obviously Alibaba sees something in Groupon other investors are missing.

While I can not speak for Alibaba, I can mention several reasons behind Alibaba investment in Groupon. First, new CEO of Groupon is to get the business model right company. Business in the early Groupon model promised consumers major discounts on various products and services, provided that enough consumers signed up to take advantage of the discount. But that did not work. So Groupon changed its business model by offering discounts on the products listed on the website, regardless of the number of consumers to sign up for the offer.

At the same time, the company simplified functions focusing the core North American market.

These moves seem to have worked, as evidenced by the recent economic that hinted at a recovery to buy online local commerce, especially in North America.

Financial metrics Groupon 16/2/2016


Source: Finance.yahoo.com

Business model Groupon completes nice Alibaba business model. Groupon can provide a good marketing platform for merchants to list their products on Alibaba site.

And perhaps most important, Groupon can help Alibaba expand its global presence, especially in North America, the company's main market.

Alibaba group holding is a well-known brand. In China, he is. But it has yet to gain recognition outside China and do in Forbes world's most valuable brands list and the best of the global Interbrand list of brands.

Which is why Alibaba investment is a win-win move for both companies.

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