E-Harmony Case
Strategy Case
Analysis
Executive Summary
Executive Summary eHarmony is uniquely placed in the online personals market through strategic innovation
eHarmony is placed in a highly competitive market * Different segments exist within the market- e.g. free do it yourself, niche sites, paid do it yourself, etc. each having many players * Emerging threat from substitutes like social networking sites * Direct competition launched by biggest competitor ‘Match’ through its ‘Chemistry’ offering eHarmony’s key valuable resource is its vast bank of customer data that it uses to match customers based on its proprietary algorithm, and its brand/reputation * Data bank is rare and inimitable for competitors or new market entrants, making it a critical resource leading to competitive advantage * “Match for life” reputation as a result of rigorous registration process attracting customers interested in long-term relationships eHarmony offers a higher value to its customers in comparison to its competitors in terms of specialization of service offered, efficiency and quality of matches and the detailed screening process
Going forward, eHarmony should focus on expanding service offerings (offering services for parenting, weddings, etc.) and explore geographic expansion to other English speaking Western countries * Expansion would be re-enforcing with eHarmony’s critical resources like its intensive R&D capabilities, customer loyalty and reputation eHarmony’s Strategy
eHarmony Strategy
The Business Model
Who
eHarmony provides services to US based individuals actively engaged in the search of long term relationships. These individuals have to be heterosexual, single, and not have divorced more than 3 times.
What
The company provides an online highly customised matching service, which is priced at a premium against competition.
How
eHarmony has a web based system that encompasses a questionnaire to prospective customers (Personality
Analysis
Executive Summary
Executive Summary eHarmony is uniquely placed in the online personals market through strategic innovation
eHarmony is placed in a highly competitive market * Different segments exist within the market- e.g. free do it yourself, niche sites, paid do it yourself, etc. each having many players * Emerging threat from substitutes like social networking sites * Direct competition launched by biggest competitor ‘Match’ through its ‘Chemistry’ offering eHarmony’s key valuable resource is its vast bank of customer data that it uses to match customers based on its proprietary algorithm, and its brand/reputation * Data bank is rare and inimitable for competitors or new market entrants, making it a critical resource leading to competitive advantage * “Match for life” reputation as a result of rigorous registration process attracting customers interested in long-term relationships eHarmony offers a higher value to its customers in comparison to its competitors in terms of specialization of service offered, efficiency and quality of matches and the detailed screening process
Going forward, eHarmony should focus on expanding service offerings (offering services for parenting, weddings, etc.) and explore geographic expansion to other English speaking Western countries * Expansion would be re-enforcing with eHarmony’s critical resources like its intensive R&D capabilities, customer loyalty and reputation eHarmony’s Strategy
eHarmony Strategy
The Business Model
Who
eHarmony provides services to US based individuals actively engaged in the search of long term relationships. These individuals have to be heterosexual, single, and not have divorced more than 3 times.
What
The company provides an online highly customised matching service, which is priced at a premium against competition.
How
eHarmony has a web based system that encompasses a questionnaire to prospective customers (Personality