There was a time when Groupon (NASDAQ: GRPN) was a huge deal as consumers pre-purchased coupons online to use at local stores and restaurants. The internet was still relatively young, though, and relationships with coupon sellers got complicated, so Groupon shifted gears. That move was a disaster, and now it's trying to go back to basics -- but it may be too late.

Groupon started life based on a simple but quite compelling notion: Small retailers and restaurants don't have the marketing budgets to do big advertising campaigns like larger rivals. So, using the internet, it would help these mom-and-pop-type locations reach a broader audience. The vehicle for this was a coupon that customers would pre-purchase online. Simplifying things a bit, Groupon basically got a cut of the sale.

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Source Fool.com