An analysis of eHarmony, including the five forces according to Porter
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 the most frequently visited in Canada and the U.K, and fourth in the United States(8).
1.2 Bargaining power of suppliers
A study by eHarmony showed that couples who met through eHarmony had happier and more successful relationships than those from other online sites (Piskorski, Halaburda & Smith 6). Accordingly, eHarmony charged twice as much prescription fees as other sites but the company revenue continued growing mostly because the customers were satisfied with the product.
1.3 Rivalry among existing competitors eHarmony’s biggest competitor, Match, had also come up with “Chemistry” a new dating site that had the same match-making idea as eHarmony. However, Match priced its site at 10% less than what eHarmony was charging. However, despite such competition eHarmony was able to distinguish itself by offering more personalized services that allowed for guided communication between would-be partners by use of personality profiles.
1.4 The threat posed by substitute products
Apart from Match, according to Piskorski, Halaburda, & Smith other free sites were coming up all over the internet that made it difficult for paid online sites to retain members (1). People were opting for the more personalized yet free online sites instead of having to pay for similar services on paid sites. However, these users were more of the casual daters; but those seeking serious relationships continued their subscription to eHarmony.
1.5 Bargaining power of buyers
Being a paid
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 the most frequently visited in Canada and the U.K, and fourth in the United States(8).
1.2 Bargaining power of suppliers
A study by eHarmony showed that couples who met through eHarmony had happier and more successful relationships than those from other online sites (Piskorski, Halaburda & Smith 6). Accordingly, eHarmony charged twice as much prescription fees as other sites but the company revenue continued growing mostly because the customers were satisfied with the product.
1.3 Rivalry among existing competitors eHarmony’s biggest competitor, Match, had also come up with “Chemistry” a new dating site that had the same match-making idea as eHarmony. However, Match priced its site at 10% less than what eHarmony was charging. However, despite such competition eHarmony was able to distinguish itself by offering more personalized services that allowed for guided communication between would-be partners by use of personality profiles.
1.4 The threat posed by substitute products
Apart from Match, according to Piskorski, Halaburda, & Smith other free sites were coming up all over the internet that made it difficult for paid online sites to retain members (1). People were opting for the more personalized yet free online sites instead of having to pay for similar services on paid sites. However, these users were more of the casual daters; but those seeking serious relationships continued their subscription to eHarmony.
1.5 Bargaining power of buyers
Being a paid
Cited: Piskorski, Mikolaj., Halaburda, Hanna. &Smith, Troy. eHarmony. Harvard: Harvard Business School, 2008. Print.