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E-Harmony Case

In: Business and Management

Submitted By adamant
Words 850
Pages 4
Question 1
Does eHarmony have a competitive advantage? If so, where does it come from?

I believe that eHarmony does have a competitive advantage. This is largely due, I believe, to their focus on and first moves toward a customer base that was looking for serious, long-term relationships and compatibility. eHarmony aimed to assist each user in ensuring they were found with a compatible partner(s). In doing this, as well as promotions by company founder Dr. Neil Clark Warren, eHarmony managed to gain the interest of faith communities, a previously untapped market segment by dating sites. As a result, there was exponential growth with 100,000 registrations within a few weeks and by early the next year there had been 300,000. This meant that eHarmony were able to break even early and become cash-flow positive only two years from it's initial breakthrough.

Competitive advantage was created for eHarmony largely through it's efficient and integrated system that it offered. It contained a Personality Profile, a Matching Algorithm and a Guided Communication System. This system was exclusive and purpose built for eHarmony as well as being patented. Upon registration, members were required to fill in an extensive Personality Profile that covered many areas of compatibility, however, were largely represented by three guiding principles; Values, Personality and Interests. This information was then assessed by focus group. Once completed, eHarmony's algorithm would assign members with compatible people. This was their key to success. At this point people were not required to pay, however, if they were wanting to engage with other members and seek out relationships then they would have to pay. This meant people could see it's value, though not be able to utilise it's value until they had paid. The patented Matching Algorithm allowed the team at eHarmony to project…...

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