EHarmony Case – Case Study Example

1) Why do people want to meet others on-line instead of finding them in the real world? The most important reason for people wanting to meet otherson-line instead of finding them in the real world is the increasing social acceptability of online meetings. This was however in turn prompted by the change of attitude of people towards online dating. The increased use both subscribed and free online dating services with huge variety in age groups has promoted the possibility of getting exposed to a wide range of people online. This also has prompted people to use online resources so as to meet others.
2) How structurally attractive is the on-line personals market?
The online personal market has shown steady growth by 2005. It has been reported that 120,000 out of 2.2 million marriages that happen in the United States every year use to be between people who had met through an on-line personal site. After 2005, there had been substantial growth in the paid subscribers in the on-line personals market. These sighns of growth make the on-line personals market structurally much attractive
3) Does eHarmony have a competitive advantage? If so, where does it come from?
Yes, eHarmony has an evident competitive advantage in the market. The competitive advantage of eHarmony comes from its focus on serious relationships. This focus has well catered to the faith communities which ahs not been dealt by other conventional on-line personal sites. This advantage is reiterated as the company has been able to convert its registered customers to paid subscribers three folds than the industry average. The products like personality profile, matching algorithm and guided communication provided by eHarmony also distinguished the company within the market.
4) How serious is the competitive threat to eHarmony?
The serious competitive threats to eHarmony are from ‘free-Do it yourself sites’ and ‘Social networks’. However, as the low credibility of ‘free-Do it yourself sites’ limit its scope and as ‘Social networks’ do not have options to directly express interest in a particular person, the seriousness of these competitive threats are limited. Similar competitors like ‘Match’ and ‘Yahoo Personals’ also pose competition for eHarmony. However, while the lack of proper resource backing holds back ‘Yahoo Personals’ from the competition, the market statistics suggest that the competition from ‘Match’ will also not affect eHarmony largely.
5) Which of the four options should Waldorf pursue?
Considering the fund and resource limitations and the need for being the leader in the market, Waldorf should opt for the first option of maintaining the repute of eHarmony as along term reliable match maker. It should be considered that it is this factor which has always given the company a competitive edge. There should be high efforts to maintain this fame and good will.