Abstract:

The practice of cloning successful innovative online business model in other markets is rapidly growing. We analyze the case of a number of startups that cloned the Groupon group buying business model in Egypt over the past 3 years. Some of these clones were successful, some surviving and some failed. Given identical business models and the same socioeconomic context, we conduct comparative case analysis of five Groupon clones in Egypt to test the effect of a number of business capabilities/business practices that influence their performance and success, including: discount level and pricing; depth and scope of product offerings; effectiveness as a marketing channel; speed to market; and financial investment and backing.