eHarmony (Business-level Strategy, Differentiation) 1.

Why do people want to meet others online instead of finding them in the real world? determining the value proposition of on-line dating approach: i) identify the primary ways through which people find their spouses in the off-line world ii) identify the advantages and shortcomings of the off-line dating process iii) determine which unaddressed shortcomings of the off-line search process give rise to the value created by the online dating process 2. How structurally attractive is the on-line personals market? determine whether the on-line personals market is an attractive industry Porter's Five Forces to explain: i) price competition ii) barriers to entry iii) buyers and suppliers iv) substitutes 3. Does eHarmony have a competitive advantage? If so, where does it come from? determine whether the on-line personals market is an attractive industry approach: i) what differentiates eHarmony from its competitors ii) how does eHarmony create value for these segments iii) competitive position of eHarmony vs Match and Yahoo Personals (financial calculation using info from case and Exhibit 10) 4. How serious is the competitive treat to eHarmony? can eHarmony sustain its strategy given threats from competitors i) analyse the sustainability of eHarmony's strategy by examining competitor's recent actions or what they are likely to do in the future ii) pay close attention to the rollout of Chemistry 5. Which of the four options should Waldorf pursue? choose one option eHarmony can pursue to defend against competitors and position the firm for long term profitability i) now that you understand eHarmony's industry, nature and magnitude of its competiive advantage and threats to its sustainability, you need to analyse which option is the best plan for the firm to be profitable in the long term and fend off competitors

---------------------------------------------------------------5. Fri 12/2 pm A. Capabilities & competitive advantage (Case 2: eHarmony). This is a case analysis session is focused on differentiation advantages. Specifically, we will analyze the eHarmony case to assess the extent and nature of their competitive advantage. The case also prompts us to consider new business opportunities for them. Here we will see that it is critical to understand the extent and nature of their existing capabilities. B. Corporate (multi-business) strategy. Here, we focus on how to create value in the multibusiness firm. So many prominent firms have multiple lines of business and yet, as we shall see,

very few are adept at creating value across businesses. We will focus on specific value creation mechanisms and why so few firms are successful implementing these strategies. a. Read 1) Case2: eHarmony (27p) 2) CS: Ch 7 (32p) 3) Enrichment: Palich, Cardinal, & Miller (2000): Curvilinearity in the DiversificationPerformance Relationship: An examination of over three decades of research. Strategic Management Journal, 21: 155-174. b. Written Case Analysis (Case2: eHarmony) 1) Your Client: Greg Waldorf hired you to analyze their competitive position and recommend a response to the wave of attacking rivals. This might include the one or more of the four proposals in the case or other actions. c. Hint: Here are a few hints: 1) What is the value proposition that drives willingness to pay in this market? Why would online dating be preferred to meeting in person? 2) How structurally attractive is the online personals market? 3) To what extent does eHarmony have a competitive advantage? If so, where does it come from? 4) How serious is the competitive threat to eHarmony? 5) What should Waldorf do to respond? Which of the four proposals show the most promise to address the challenges? 2) Poll questions (https://buswisc.qualtrics.com/SE?SID=SV_8ektgiqH74QUsS0): To what extent does Match.com (e.g., and their new site Chemistry.com) pose a threat to eHarmony? (e.g., buy, hold, or sell eHarmony stock) Which of the proposed growth strategies would you recommend for eHarmony (defend their niche against Match/Chemistry, target more casual daters, international expansion, or new life stage products)? What drives willingness to pay in this market? ( 500 characters). ---------------------------------------------------------11. Imitation and Sustainability Strategy and the Internet eHarmony How is this different than a bar? Should eHarmony price differently for men and women? How structurally attractive is this market? Does eHarmony have a competitive advantage? If so, where does it come from? How serious is the competitive threat to eHarmony? What should Waldorf do?

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1.

How structurally attractive is the on-line personals

market?

Why?

2.

Does eHarmony have a competitive advantage in this If so,

market (i.e., higher WtP and/or lower OC than rivals)? where does this advantage come from, and why?

3.

What are the competitive and substitution threats facing How serious Why? Is eHarmonys position sustainable? Why

eHarmony? are they?

or Why not?

4. Evaluate eHarmonys options. choose, and why?

Which should eHarmony