Analysis of competitive advantage and Corporate strategy:
The case puts students in the shoes of Greg Waldorf, the CEO of E-Harmony, who in late 2007 needs to decide how to respond to competitors copying the company’s unique features. E-Harmony is an on-line personals site targeting marriage-minded individuals, with a successful differentiation strategy. If offers a unique product, which combines an extensive relationship questionnaire, a patented matching system and a guided communication system. Despite charging a substantial premium for its services, E-Harmony experienced phenomenal membership growth while its competitors stalled. As a consequence, it was able to increase its paying membership base to roughly half of its largest competitors, even if it entered the market six years after they did.
The company’s strategy was replicated by its competitors. The case presents four strategic options to be considered by E-Harmony.
Suggested Questions:
1. Why do people want to meet others om-line instead of finding them in the real world?
2. How structurally attractive is the on-line personals market?
3. Does E-Harmony have a competitive advantage? If so, where does it comes from?
4. How serious is the competitive threat to E-Harmony?
5. Which one of the four options should Waldorf pursue?