The Growth of Foursquare

Recently, I came across an article (click here)that discusses Foursquare's relationship with Facebook. Foursquare is a geo-location sharing application. Foursquare allows customers to interact with business by checking-in to unlock codes that represent coupons.

In the article the CEO discusses how is it a bit challenging to compete with larger social networking tools such as Facebook and Twitter Foursquare is based upon five components: check-ins, place, game mechanics, tips and leaderboards. Foursquare provides a mobile environment for health competition while encouraging user to explore their respective cities.

Foursquare has recently partnered with Facebook for the Facebook Places app on the website. At one point Facebook offered to $125 million to acquire Foursquare and the company declined. The CEO Dennis Crowley prefers to have the flexibility of having a smaller company because he can hire staff that he believes will contribute to company's success.

I think that it is admirable that they refused Facebook's offer. In the current economy, fear would say to sell but those that are truly success must take risks. I believe that the risk they have taken will prove to be very profitable.