Introduction
Online dating service eHarmony was established in 1998. Later, in the month of August 2000, it was formally introduced. Due to the following factors, the corporation has had a competitive advantage over its rivals ever since.
Distinctive and Customer-Focused Products and Services
Unlike its competitors, eHarmony's products and services are distinctive and customer-focused. The business utilizes a coordinated system. The system includes some key firm data that directs clients from the time they sign up till they become members. Such data includes personality profile topics that are fed into a matching algorithm, which eventually resulted in the creation of guided communication system inquiries. The company main objective is linking singles seeking a serious relationship. The company's personal profile, which is, based on relationship questionnaires give customers a sense of seriousness and hope of finding their mates. The strict rules followed by the company's management regarding membership, after answering encourages serious customers looking for relationship partners that would lead to marriage. The rules that involve declination to sell membership to underage, married people, and customers who have divorced more than three times, specifies the sole purpose of the company and this in turn enables the quality of its pool healthy. The company to assess the answers to the questions asked using matching algorithm. The matching algorithm that is unique to the company draws matches for a prospective relationship creating attraction to the customers. Moreover, the company also went ahead to develop a communication system that is guided and has increased the company's consumer base unlike other companies that lack such patents. The guided communication has enabled customers to gravitate to the most superficial questions that were otherwise hard to express on online sites. The guided communication provided by the company eliminated the social stigma associated with the other forms of matching. The company has also provided fast track requests due to customer demand that has led to its increased customer subscription.
Investment in Marketing
The company has invested most of its resources towards marketing in order to support its expanded customer membership base. The company has aired its commercials on radios and TVs before the founder stumbled into a very successful campaign in order to increase its customer membership through increased subscription. A successful advertising formula, which was focused on direct-response marketing other than pure brand-building activities, has also edged the company against its competitors. The company also devised its budget strategies to online marketing that include paid internet search and banner ads that allow a wider customer base.
Investment in Research and Development
The company's investment in research and development has helped the company to identify biological, physiological, and neurological insights that underpin love. This has been possible through conducting research on physical attraction and study on 400 couples who have been enrolled through their engagement period through marriage until their life stage transition. The insights identified could be turned into products and services becoming new businesses for eHarmony.
Contemplating New Business Opportunities
eHarmony is facing a very serious competitive threat. Therefore, the CEO, Waldorf should contemplate on the third option. This because starting a new business based on eHarmony research and development efforts reduces rapid competition posed by its several competitors such as Yahoo. The new development will also increase the company's revenue through advertisement and creates new market base where there existed no opportunity. The company will therefore maximize on the new opportunity leading to huge profits.
