1. Why do people want to meet others on-line instead of finding them in the real world?

More prosperity means more independency Aimed dating Less money and time spent on searching a partner

2. How structurally attractive is the online personals market?

Membership Audience Technology

Paid do-it-yourself sites

paid Users with serious intensions

Users provide site with some basic information. The

process of looking is time consuming

Free do-it-yourself sites

free Lurkers and casual daters

Mainly poor. The main aim of such

sites is quick search

Niche sites

Paid or free Target the specific audience.

«Community of interest sites».

Quite poor

Online social networks

free Casual datings, there is no

specialization in personals

There is no special technology, simple

apps

Types of users:•persons in search of relationships

ready to pay for quality (eHarmony)•persons is search of dating ready to

pay to pay for technology/quality•persons using such applications just

for fun/hookups•persons with specific interests

Structural attractiveness• types of users variety• users with willingness to pay• technology availability (for producers)• technology access (for consumers)• increasing confidence in the on-line

dating services

3. Does eHarmony have a competitive advantage? If so, where does it come from?

Orientation on long-term relationships Unique matching system in Internet personals domain Deep personality analysis Professional estimates that lead to frequent positive

matches

4. How serious is the competitive threat to eHarmony

Paid Do-It-Yourself site

•Few barriers to joining•Need to provide just basic information, may provide additional information about them if they wish•Short registration process •Specify the criteria for search•Users browse profiles themselves and make their choice

Online social networks

• Important substitution to personals sites•Make use of “viral” process•High veracity of information provided•Person’s real life monitoring availability

Free Do-It-Yourself site

•Attract members quickly•Most frequently visited dating sites•Beat paid personals sites

Niche sites

•Low customer acquisition costs•Very targeted and specific•Cover various minorities

4. How serious is the competitive threat to eHarmony

Rivalry Threats:

• Activities of Match targeted to leave eHarmony with no USP and precise competitive advantage

• Anti-eHarmony marketing campaign that emphasizes that eHarmony has multiple limitations in who can subscribe the source and Match tries to comfort those rejected prospects by offering them similar services with no restrictions and creating a negative attitude towards eHarmony

• Paid Do-It-Yourself sites

5. Which of the four options should Waldorf pursue

4th option - expanding geographically • before diversifying portfolio• way to compete with strongest competitor- Match (invested much money in going international)

Where to expand?A. Canada • High marriage rate• No additional advertising expenses

B. Germany or Italy • Perception of marriage as not out-of-date social institution

C. Latin America • 14% of Internet users ( high rate)• Big Latin American community in the U.S.A.

Thank you!