Case Study: Hurrydate

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Hurry Date Case Study 1. What is Hurry Date's strategy? What are the key success and risk factors associated with this strategy for the firm individually, and this industry generally? Michael Porter has argued that there are two main strategy categories for firms who seek to gain and retain a competitive advantage; cost advantage and differentiation. Cost advantage is where a firm is able to hold down its costs and gains superior profits compared top other firms in the same industry or segment. Differentiation is where a firm offers something different to its competitors, and the different aspect adds value to the product or service. Hurry Date appears to have a low cost strategy which may lead to a cost advantage, seen with the low investment in assets and the lack of capital tied up as well as the remuneration for hosts and the efficiency created by the IT system. For a firm to succeed in gaining cost advantages the organization needs to find ways to operate efficiently and carefully control operating costs. The Hurry Date model is one where few assets are owned, hosts are self employed and earn a percentage of profits has an IT system, supports efficiency sales aid with this approach. The horizon diversification with different mediums and events also helps to increase differentiation as a secondary strategy with a range of services offered. The cost advantage helps with the ability to pursue pricing and marketing strategies to gain new customers and differentiation

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