EHarmony CEO must decide how to respond to imitations of its business model, the invasion of competing models and ascension free substitutes. The case offers four options to address these threats and asks students to choose once the company strategy was analyzed. The analysis begins with an understanding of the value proposition, from substitutes failures. He proceeds to examine the structure of the industry and the significant differences between the different niches. Then, students can analyze the essence of a strategy directed differentiation and understand the strategic importance of arbitration costs. They can also estimate the size of the competitive advantage of eHarmony in two other competitors before articulating threats to sustainability, which will help to choose one of four options.
Mikolaj Piskorski January
Source: HBS Premier Case Collection
Publication Date: June 1, 2008. Prod #: 709424-PDF-ENG
Solution if eHarmony