According to the information provided in the case, the CEO of the eHarmony wants to decide how to address the short term competitive threats and company position to achieve success in the longer term.
Following were the major problems that convert into the objective to achieve for the company
- How to turn the results of insights that would help to create new business opportunities?
- How to covert the users of the company into paid subscribers?
- How to become the top leading matchmaking company in the market in the long term relationship segment?
The above-discussed problems can be summarized into three different categories including competition, cost, and demographics vs. psychographics. So according to the situation, there would be the primary decision how eHarmony should address to the existing competitors. On the basis of the market position and alternative business opportunities to eHarmony the analysis will be done and on such analysis, the final decision or recommendations will be made. So the number of problems are discussed in the case that has a strong relationship with the analysis discussed in the case.
The basic purpose of the eHarmony is to gain a competitive advantage by investing in resources to achieve superior innovation in quality and customer responsiveness. The position of the eHarmony is challenged by the other firms by offering a similar type of services and strategy. The existing resource’s limitation and disruptive technologies undermine the sustainability of the eHarmony.
The assumptions during the analysis cannot be ignored because in the online industry there are no any difficulties to enter, so any entrants can be entered with limited investment. New entrants cut the prices so the customer can easily switch to the other services provided. There is one other drawback the competition will increase with the entrance of each service provider.
According to the situation given in the case and analysis rather than increasing the advertising budget organization should use defensive strategy rather than introducing new products in the market. It should use its own algorithm and use well match strategy as which product has high selling should be placed more in these stores. By making such a personality profile and guided communication system it will enable to get a good position in the market.