Two Cases briefs. Needs to be 4 pages. Please no plagiarism.
In this regard, it is essential to state that there is similar size of the competing firms, which are giving the same service, thus undifferentiated business strategy or service by the companies increases the competition among them as well.
Threat of new entrants is medium because if any general industry launches itself then there are low barriers but in terms of a target market there are large barriers. However, it can be said that a slow industry also means that there is less chance of new entrees to emerge. The capital requirement to launch such company is low, which makes new entrees to emerge more frequently.
The presence of offline matchmakers makes the threat of substitute high. There are other social networking sites like Face Book, where people are able to find their compatible mates. As there are low switching costs so people may use these traditional methods of dating more than the online match making companies. Moreover, as the company is providing an undifferentiated product so the threat is high.
As magnitude of substitute products are high and there are low switching costs so it can be said that the bargaining power of buyers is high. Moreover, mostly people are more prices sensitive which makes them more inclined towards bargaining. The buyer volume is high which makes the customers dictate prices of the services.
e-Harmony uses a business framework in which the customers first need to make their profile on the site. Company limits the number of results per day so that the judgment errors are reduced. There is selective filtering of the customers according to their marital status and poor personality profile. Moreover, customer’s behavior is analyzed and there are recommendation systems that provide connections to people of their self-interest.