E-HARMONY Article Example | Topics and Well Written Essays - 500 words

E-HARMONY - Article Example Also, the buyers have high bargaining power as there is an increasing number of substitutes available and they show sensitivity to the prices charged to them. Moreover, they are looking for special customized services so that they feel valued. New entrants have medium to low intensity as there are low barriers for industry in general but relatively high barriers for specific target market. The enterprises have to invest huge amount of money in Research and there are patented algorithms. Additionally, there is strong requirement of having a strong brand name to compete effectively. In order to analyze E-Harmony’s value proposition or business model, the core competencies and value creating constituents are discussed. The core competency of the firm is in its highly integrated system which comprises of three components i.e. Personality Profile, Matching Algorithm and Guided Communication. This entire procedures has been designed in such a way that the customers are contended with the value for their money invested in availing the service. Also, this procedure has been incorporated after extensive research so that the matchmaking is undertaken with perfection. In addition to these three crucial elements, the other value generating activities are openness in communication, creation of E-Harmony labs, singles only policy, sufficient allocation of funds in marketing techniques and premium prices for memberships. After a detailed review of E-Harmony’s internal and external environment, it is apparent that it is following a differentiated strategy for attaining the competitive advantage. The company is mainly targeting the niche market which comprises of highly competent pool of candidates. Although the process of registration is time-consuming but eventually the customers are satisfied as they find the most compatible spouse. Furthermore, the enterprise has allocated adequate amount of funds in marketing campaigns so that it can employ