Eharmony Case
Ashley Garcia
Bus. 5133.01
Texas Woman’s University
School of Management
Dr. Pushlaka Raman
February 16, 2012
SWOT analysis/Competitive advantage In 2007 eHarmony was faced with four options concerning the future of the company; defending their superior position, opening up the site to casual daters, starting a new business venture, or geographic expansion. In order to understand what made them successful, a SWOT was conducted to analyze both the internal and external environments.
Strengths
Everyone has seen an eHarmony commercial on television and most can tell you what kind of service they provide. The company’s stellar reputation in the online dating market can be attributed to a strong marketing/advertising department. Part of the company’s success was due to the matching process. Members were matched based on their responses to an extensive questionnaire and a matching algorithm. This kind of process required eHarmony to be strong in research and development as well.
Weaknesses
While the company continues to uphold a good reputation, there are things that can be improved. While the service being offered is unique, exclusivity can hinder market growth. For example, eHarmony does not offer same sex services; they limit themselves to the heterosexual segment. Although the price of the membership is a useful tool in weeding out those people who aren’t serious, it may also turn away those who are. The company is also geographically exclusive; with services only provided in the U.S.
Opportunities
Taking a glance at the weaknesses exhibits that there is room for considerable market growth in varying ways. While the homosexual segment is small in comparison to the heterosexual segment, the demand is still there. Another weakness is the lack of market presence internationally. Although many wondered “whether U.S. based research could credibly predict matching patterns in other countries”, this opportunity could be profitable (Ferrell &
Bus. 5133.01
Texas Woman’s University
School of Management
Dr. Pushlaka Raman
February 16, 2012
SWOT analysis/Competitive advantage In 2007 eHarmony was faced with four options concerning the future of the company; defending their superior position, opening up the site to casual daters, starting a new business venture, or geographic expansion. In order to understand what made them successful, a SWOT was conducted to analyze both the internal and external environments.
Strengths
Everyone has seen an eHarmony commercial on television and most can tell you what kind of service they provide. The company’s stellar reputation in the online dating market can be attributed to a strong marketing/advertising department. Part of the company’s success was due to the matching process. Members were matched based on their responses to an extensive questionnaire and a matching algorithm. This kind of process required eHarmony to be strong in research and development as well.
Weaknesses
While the company continues to uphold a good reputation, there are things that can be improved. While the service being offered is unique, exclusivity can hinder market growth. For example, eHarmony does not offer same sex services; they limit themselves to the heterosexual segment. Although the price of the membership is a useful tool in weeding out those people who aren’t serious, it may also turn away those who are. The company is also geographically exclusive; with services only provided in the U.S.
Opportunities
Taking a glance at the weaknesses exhibits that there is room for considerable market growth in varying ways. While the homosexual segment is small in comparison to the heterosexual segment, the demand is still there. Another weakness is the lack of market presence internationally. Although many wondered “whether U.S. based research could credibly predict matching patterns in other countries”, this opportunity could be profitable (Ferrell &
References: Ferrell, O. C., & Hartline, M. D. (2011). Marketing strategy. (5 ed., pp. 559-580). Mason, OH: South-Western Cengage Learning.