ANALYSIS & EVALUATION:4
SOCIAL AND CULTURAL TRENDS:5
MICRO LEVEL ANALYSIS:6
MAJOR PLAYERS IN THE INDUSTRY:7
WHO EHARMONY WANTS TO ATTRACT:8
HAVE THEY SEGMENTED THE MARKET:8
HAVE THEY FIGURED OUT WHO THEY DON’T WANT TO ATTRACT?8
MARKETING AND SALES8
GETTING CUSTOMERS TO BUY MORE9
DO EHARMONY HAVE GREAT R&D PARTNERS?9
SOCIAL AND LEGAL:9
ISSUES AND SOLUTIONS?9
EFFECTIVE IT SYSTEM10
PORTER’S 5 FORCE ANALYSIS:10
Exhibit 1: Competitive Analysis10
Exhibit 2: Analysis of Internal and External Environment12 ISSUES and/or PROBLEMS:13
EXHIBIT 3 - ALTERNATE ANALYSIS:13
Exhibit 4: Comparative Option Analysis15
EXHIBIT 5 - ACTION PLAN:17
From: Best Consultants
Subject: Proposed strategy for eHarmony to respond to the growing competitors.
The online dating industry is one of the few Internet content segments that has survived the late 1990s “boom to bust” phenomenon and is growing at an unprecedented rate while providing significant economic returns for its incumbents. Among these companies, none is better positioned to gain sustainable market dominance than eHarmony. The following analysis examines the online dating industry and eHarmony’s current strategic position, potential threats and opportunities for competitive advantage and the recommendation for the future growth. Despite the Company’s current position, the threat of disintermediation and encroachment by new competitors remains a constant risk for any online business. eHarmony needs to protect its market share and financial performance by enhancing its differentiation advantage, expanding globally and preempting positional disintermediation.
ANALYSIS & EVALUATION:
* The online Personal market was growing very slowly, reaching $40 million in 2001. * By 2005, the situation changed dramatically, with 16 million people to have visited at least once. * In 2007 the industry grew to $900 million. There was downward trend in the number of people visiting dating sites, but the number of paying subscribers increased leading to this growth in the industry. * Observers believe that industry will double in size in 2012.
* Initially younger groups came on dating sites.
* Soon 40 -50 year olds became fastest growing market segment. Nearly 20% in this group pay membership. * The dating website is facing a growth mainly in US, UK, Europe and in the middle east. * Of those people who ever used personals website, 45% had never been married, 31% were divorced, separated or widowed; and 23% were married. * More than 5% of the 94 million U.S. singles were paying members of an online personals site, allowing the industry to grow to $900 Million in 2007. INCOME DISTRIBUTION:
* 14% of people who visits personals website have a household income less than $30,000 * 13% of people who visits personals website have a household income between $30,000 to $49,000 * 10% of people who visits personals website have a household income between $50,000 to $74,999 * 9% of people who visits personals website have a household income greater than $75,000
* 10% of people who visits personals website are Whites.
* 13% of people who visits personals website are Blacks.
* 14% of people who...