Marketing and Online Social Networks

1846 Words8 Pages
Situation Synopsis: Competitors have developed different approaches to attract consumers in the online dating market; some of which have been copying eHarmony’s product features and using alternative strategies to attract singles.
Company’s Current Strategy: eHarmony uses a focused differentiation strategy. It focuses on singles seeking a serious relationship and long-term compatibility. It distinguished itself from other sites by using a unique matching algorithm. They have also invested substantial resources into marketing and R&D.
Problem Statement: eHarmony has opened the door to their competition by declining potential customers as a way to ensure quality control. eHarmony 's CEO must decide how to react to imitations
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1.2.5 Key Success Factors (See Appendix A) 1.2.6 Strategic Groups Map (See Appendix B for Strategic Groups Map)
Cost to join and barriers to join an online personal site are the two dimensions which are relevant to a firms’ performance within this industry. eHarmony possesses the highest membership fees in the industry along with particularly high barriers to join. Even their direct competitors; Match and Yahoo! Personals differ from eHarmony in that they have much lower barriers to join as well as lower sign up fees. Most of their indirect competitors are free and have little to no barriers to join. 1.2.7 Strategic Issues in the Industry • Industry was plagued by people misrepresenting themselves and putting false personal information • Users are concerned about the privacy of their information • Level of customer dissatisfaction remains high

1.2.8 Opportunities & Threats
• This industry will continue to rise in popularity due to increasing usage of computer technology. • Due to it being a more affordable means of match making, people will generally turn to online personals as opposed to other offline services. Convenience also plays a factor. • Increasing their market share, catering to more market segments. (Niche markets).

Threats: • Online personals sites with more resources pose a threat to those lacking resources. • Security issues linked with sharing information
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