Eharmony Strategic Analysis
Strategic Analysis of eHarmony
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CONTENTS
EXECUTIVE SUMMARY 4
ANALYSIS & EVALUATION: 4
EXTERNAL ANALYSIS: 4 ECONOMY: 4 DEMOGRAPHICS: 4 INCOME DISTRIBUTION: 4 ETNIC MIX: 5 GEOGRAPHIC DISTRIBUTION: 5 AGE STRUCTURE: 5 SOCIAL AND CULTURAL TRENDS: 5 GLOBILIZATION: 5 TECHNOLOGICAL TRENDS: 5 GOVERNMENT INTERVENTION: 6 BUSINESS TRENDS: 6
MICRO LEVEL ANALYSIS: 6
BUSINESS CYCLE: 6
MAJOR PLAYERS IN THE INDUSTRY: 7 DIRECT COMPETITORS: 7
INTERNAL ANALYSIS: 7 OPERATIONS MANAGEMENT: 7 COST CONTROL 7 RISK: 8 CUSTOMER MANAGEMENT: 8 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 SALES 8 LOYALTY PROGRAMS 8 GETTING CUSTOMERS TO BUY MORE 9 INNOVATION: 9 DO EHARMONY HAVE GREAT R&D PARTNERS? 9 TESTING METHODS 9 SOCIAL AND LEGAL: 9 ISSUES AND SOLUTIONS? 9 ANALYSE OVERHEAD: 9 TOP MANAGEMENT 9 EFFECTIVE IT SYSTEM 10
PORTER’S 5 FORCE ANALYSIS: 10 Exhibit 1: Competitive Analysis 10 Exhibit 2: Analysis of Internal and External Environment 12
ISSUES and/or PROBLEMS: 13
EXHIBIT 3 - ALTERNATE ANALYSIS: 13 Exhibit 4: Comparative Option Analysis 15
RECOMMENDATIONS: 16
EXHIBIT 5 - ACTION PLAN: 17
To: eHarmony
From: Best Consultants
Subject: Proposed strategy for eHarmony to respond to the growing competitors.
EXECUTIVE SUMMARY
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.
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CONTENTS
EXECUTIVE SUMMARY 4
ANALYSIS & EVALUATION: 4
EXTERNAL ANALYSIS: 4 ECONOMY: 4 DEMOGRAPHICS: 4 INCOME DISTRIBUTION: 4 ETNIC MIX: 5 GEOGRAPHIC DISTRIBUTION: 5 AGE STRUCTURE: 5 SOCIAL AND CULTURAL TRENDS: 5 GLOBILIZATION: 5 TECHNOLOGICAL TRENDS: 5 GOVERNMENT INTERVENTION: 6 BUSINESS TRENDS: 6
MICRO LEVEL ANALYSIS: 6
BUSINESS CYCLE: 6
MAJOR PLAYERS IN THE INDUSTRY: 7 DIRECT COMPETITORS: 7
INTERNAL ANALYSIS: 7 OPERATIONS MANAGEMENT: 7 COST CONTROL 7 RISK: 8 CUSTOMER MANAGEMENT: 8 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 SALES 8 LOYALTY PROGRAMS 8 GETTING CUSTOMERS TO BUY MORE 9 INNOVATION: 9 DO EHARMONY HAVE GREAT R&D PARTNERS? 9 TESTING METHODS 9 SOCIAL AND LEGAL: 9 ISSUES AND SOLUTIONS? 9 ANALYSE OVERHEAD: 9 TOP MANAGEMENT 9 EFFECTIVE IT SYSTEM 10
PORTER’S 5 FORCE ANALYSIS: 10 Exhibit 1: Competitive Analysis 10 Exhibit 2: Analysis of Internal and External Environment 12
ISSUES and/or PROBLEMS: 13
EXHIBIT 3 - ALTERNATE ANALYSIS: 13 Exhibit 4: Comparative Option Analysis 15
RECOMMENDATIONS: 16
EXHIBIT 5 - ACTION PLAN: 17
To: eHarmony
From: Best Consultants
Subject: Proposed strategy for eHarmony to respond to the growing competitors.
EXECUTIVE SUMMARY
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.