Technology Company or Not-Technology Company. The Distinction Matters for Companies and Investors Alike.

Om Malik has some good points in this article in which he looks at companies like Groupon that hold themselves out a technology companies, but whose business model and valuation (and value proposition) are not really in line with true tech companies. It is important for investors and the companies themselves to understand this the distinction between a technology company and a company that provides not technology products/services using the web or social networks as their sales pipeline. Otherwise one or both can have a rude awakening when their results (in terms of growth, development, and valuation) do no meet expectations.

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