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Strategy Presentation: eHarmony
Transcript of Strategy Presentation: eHarmony
Rapid internationalization achieved
by acquisitions + alliances
Geographical expansion to the UK (2008), Australia, Brazil and Canada.
Affiliation with eDarling – now represented in 11 other European countries.
Services have been tailored to suit the needs of different religious communities.
Gay and Lesbian market has been addressed.
Portfolio has been expanded to include additional websites such as dating advice, wedding planning, mother hood.
Changes since then:
-Online dating site which is
“..serious about dating which might lead to marriage”.
- “Opposites attract, then they attack”
- Development of eHarmony‘s Compatibility -Matching System
- customers matched on 29 dimensions of compatibility
What is eHarmony?
- Founded by Dr. Neil Clark Warren & Dr. Galen Buckwalter
- Launched August 2000, California (USA)
“To empower people with the knowledge and inspiration needed to grow and strengthen their most important relationships for a lifetime of happiness”.
well known brand name
Innovative & patented matching technology
Strong marketing campaign - highlights its free to join certain memberships therefore people will visit the site
Strong ability to turn non paying members into paying members ( 3 * more than competitors)
Becoming more diverse by entering into new markets
Endorsed Endorsed by the christian community **
Can expand into other niche markets and other countries
constant technological advances constantly leading to better matching systems
Move into the mobile app sector (e.g. Zoosk)
Divorce market growing as its more socially acceptable to be married more than once
Integration of more social media & eHarmony
Possibly lowering the subscriptions fee
No longer the number one dating site - match.com
Bad publicity eg. the same sex court case & the password leak of 1.5 million
Long questionnaires and higher membership fees may drive away custom
Extremely selective - turns down 20%
Confusion amongst paying customers that non paying seem to be able to contact them.
If moving into niche markets where there already are competitors, the competitors will already have expertise in that field.
Huge number of competitors in the market - almost no barriers to entry( free personals, match and chemistry.com etc.)
More password leaks/ hacking - have promised a private safe site
Marriage is becoming much less popular every year, therefore the segment is decreasing.
solutions part 2
Threat of substitutes
degree of competitive rivalry
Threat of new entrants
Porters five forces
-App is FREE
Spot your match while you’re out!
Partnership with Facebook
– markets e-Harmony to the masses.
Acquiring smaller dating companies
-Helps attack and penetrate niche markets
Differentiation strategy only
Contingency plan - a solutions company
Who's the prettiest?
To attract younger audience, gain market share and maintain competitive advantage through technology.
-greater market share
-increased power vis-à-vis buyers and suppliers
-greater economies of scale
Brand image might be perceived as more social/casual rather than serious
stalking and unwanted attention
Combination of Ansoff and Generic Competitive Strategies
- Viral videos
E-Harmony had previously expanded internationally but failed
Alter their global strategy to penetrate new markets faster
Match in China
Enter through the use of a Joint Venture – Japandate
But Cage Analysis may not be entirely reliable
China may also be plausible
Value derived from research and knowledge
Why not become a solutions company?
subscription model has to be revised for the international expansion
But first, grumpy cat.
The web changes everything
Where to go from here?