Director General Eharmony needs to decide how to respond to an imitation of its business model, encroachment by competing models and the dominance of the free alternatives. The case provides four options to address these threats and asks students to select one after the analyzed company's strategy. The analysis begins with an understanding of value proposition, as a derivative of the failures of substitutes. He proceeds to examine the structure of the industry and the important differences between the various niches. Students can then analyze the essence focused differentiation strategy and understand the importance of costly strategic compromises.
They can also estimate the size of Eharmony competitive advantage over the other two competitors, before the formulation of threats to the sustainability, which will help them to choose one of four options. "Hide
by Mikolaj Jan Piskorski, Hannah Halaburda, Troy Smith Source: HBS Premier Case Collection 26 pages. Publication Date: July 1, 2008. Prod. #: 709424-PDF-ENG