Eharmony Strategic Analysis

3811 words 16 pages
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
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* Increase in the use of Customer Relationship Management (CRM) in dating industry to improve customer satisfaction.
GOVERNMENT INTERVENTION: * The existence of The Unruh Civil Rights Act (a piece of California legislation), that specifically outlaws discrimination based on sex, race, color, religion, ancestry, national origin, disability, medical condition, marital status, or sexual orientation draws a big line in the dating industry.

BUSINESS TRENDS: * Mergers and acquisitions play a big part in the dating industry. * Many big players acquire a decently established dating site to enhance its brand name -and its presence in various demographics. * Most companies spend money in overseas expansion. Acquiring an already existing company in that place makes the work easier for the company. * The growing trend is that, most of the dating sites started to have alliances with Social networking sites to advertise and also to bring in new members.

MICRO LEVEL ANALYSIS:
KEY SUCCESS FACTORS:

* Conversion rates. Conversion of non paying members to paying members. * Number of clicks registered in the website. * Brand image of the company. * Customer satisfaction. * Bringing new customers. Attracting a larger customer base. * Business continuity. Using the best user friendly website, this is the key to the company’s success.

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