Why did ensogo shut down?

Why did ensogo shut down?

Ensogo is a deals business for buying goods and services online. in the form of a website By using discount sales of various services such as restaurants, hotels, spas to attract customers. It was shut down in 2016 for several reasons as follows.

- industry competition

As Ensogo emerged as number one, other competitors soon followed suit, igniting competition in the industry.

- Ability to negotiate with suppliers

In the beginning, Ensogo did a good job of negotiating with different stores, but as more and more competitors started to emerge, This gives merchants more options and therefore can choose to sell deals to the dealers with the lowest queuing fees, causing Ensogo to have to reduce margins to keep the stores

- The ability to negotiate with low-ranking customers.

With more competitors, Ensogo needed to organize deals to retain its existing customer base. and build a new customer base But it still depends on the customer whether to choose to use the product or buy the service from any dealer. at the best value

- substitute products

Because deals are risky products, comparable to oral promises. which has already been purchased and does not know whether it will actually work or not, Ensogo therefore launches a replacement product, which is the purchase of goods and services without having to go through a deal

- Defense against new rivals

This type of business has very low defensive turrets. Building loyalty from customers or stores is difficult. So it's not surprising that Ensogo can't stand.

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