Eharmony Case 393

1608 WordsJun 14, 20157 Pages
Sara Simpson Yuliana Lentova Janice Garcia eHarmony 1. Why do people want to meet others online instead of finding them in the real world? How is this related to strategy? People now choose mates based on how they make them feel verses the functional partnership that marriage was the centuries before. Currently, people meet other people in the real world through colleagues, friends, family members, or at school, work, or church. Meeting others in the real world takes time and patience. People prefer to meet people online for a variety of reasons. There are currently over 20 million singles online and eHarmony states that one in five marriages started from an online relationship. By searching online, you have an increased the…show more content…
Using Porters Five Forces to examine the attractiveness of the industry structure we will first look at buyer power. First, online daters have a lot of power in that there are many different online dating websites they can choose to use such as Match, JDate and Tinder. Online dates can also elect to a more traditional approach and date offline. Since online daters are individual consumers there is no scale power and must accept the price for online services. Most online daters recognize that meeting the right person has value, and are willing to pay a higher price to do so. Secondly, the industry is very competitive; especially when eHarmony competitors charge a lower price and others are free. Competition increases when you factor in all the niche sites like and The industry has become very concentrated and online daters can try competitors with little or no switching cost by just clicking a mouse. This causes the risk of substitutes to be high because online daters can try several different sites at the same time. Lastly, exit barriers are low because sites open and close every single day with little to no fanfare. The competitive advantage eHarmony has is differentiation and brand identity. eHarmony caters to the “looking to commit” online dater, not one who is looking for casual hookups. They do this by offering a unique algorithm along with a two hundred and fifty­eight questionnaires to

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