EHarmony

Strategic Analysis of eHarmony ------------------------------------------------- CONTENTS EXECUTIVE SUMMARY 4 ANALYSIS & EVALUATION: 4 EXTERNAL ANALYSIS: 4 ECONOMY: 4 DEMOGRAPHICS: 4 INCOME DISTRIBUTION: 4 ETNIC MIX: 5 GEOGRAPHIC DISTRIBUTION: 5 AGE STRUCTURE: 5 SOCIAL AND CULTURAL TRENDS: 5 GLOBILIZATION: 5 TECHNOLOGICAL TRENDS: 5 GOVERNMENT INTERVENTION: 6 BUSINESS TRENDS: 6 MICRO LEVEL ANALYSIS: 6 BUSINESS CYCLE: 6 MAJOR PLAYERS IN THE INDUSTRY: 7 DIRECT

eHarmony SWOT Analysis * Strengths * Well-defined competitive space (Marriage-Minded Singles), Long-term compatability * Endorsed by Christian organizations * מאושרה על ידי ארגונים נוצריים * Able to convert active members to paying members 3 times as effectively than competitors * Distinguished by Personality profile and patented matching algorithm * מתאפיין בפרופיל אישיות ובאלגוריטם האמאמת אישיות אשר מוגן תחת פטנט. * Extensive Relationship questionnaire

Now the central problem for eHarmony has begun. eHarmony established itself as the leading matchmaking company but with competitors threatening to take market share, the company needed to find a way to preserve its reputation and remain the top matchmaking website for long term relationships. Industry Environment Beginning with Internal Rivalry, eHarmony faced a lot of competition within the industry. The most notable competition rested

An analysis of eHarmony, including the five forces according to Porter 1.1 The threat of new entrants The biggest threat to eHarmony and other paid dating sites was the free dating sites that were the newest entrants into the market. These sites did not have major restrictions to joining and did not necessarily do the match-making for the members. According to Piskorski, Halaburda & Smith, very many people subscribed to such sites as witnessed by the rise of “Plenty of Fish” in 2007 to become

Case study: eHarmony Concepts of a case study: General to specifics. The economic, strategic and business logic of the industry. What are the choice, pros, cons, trade off. Intro eHarmony: online dating site for marriage-minded individuals. It combines extensive relationship questionnaire, patented matching system and guided communication. Information good of eHarmony: individual match. Match: eHarmony biggest competitor. I. Overall view of the industry | Size | Information

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 

eHarmony advanced in the online dating landscape by establishing its brand as the site for the serious relationship seeker, particularly women. The outcome was a dating site that at the time conflicted with all the standard practices and introduced a new of mechanism in the industry. eHarmony didn't permit clients to scan and search the database for potential mates. Rather, eHarmony enforced clients to finish a comprehensive survey and based on the results, provided clients an assigned measure of

development, (2) secure technology via patents, (3) market heavily to monetize products, all of which will diminish bottom line results. Does eHarmony have a competitive advantage? eHarmony, founded by Neil Clark Warren in 2000, has pushed itself to the top of a very competitive industry. Currently maintaining a market share of 11.9% in the Dating Services Industry, eHarmony has grown their revenue by 2.5% YoY due to the competitive advantage that they have created. This competitive advantage stems from a

about finding a person for a long-term relationship (rather than those who are just browsing, or hoping to have flings with as many people as possible). With eHarmony’s superior product, we can calculate that their competitive advantage (WTP-Cost)eHarmony> (WTP-Cost)Chemistry. In this case, eHarmony’s average price (of the four options) is $37.45 versus $34.14 for Chemistry, demonstrating the increased WTP of their customers. Further, their advertising strategy (avoiding costly broadcast networks

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