eHarmony should opt for the third option, that is “growing a new business based on eHarmony’s own research…” The company has already substantially invested in R&D labs and studies on physical attraction and life stage transitions. The findings on these studies could be used as a competitive advantage to acquire more subscribers than the company’s competitors. Moreover, eHarmony has always distinguished itself from the other sites by having created a system that is based on the specific results of studies, rather than a random set of questions. eHarmony’s well know reputation will help the company to create credibility and awareness of the new service. Furthermore, eHarmony already has the knowledge of how to target this market, and the company already has the customer base. The new services would feature expert advice on weddings, pregnancy fertility, parenting and elder care.
The new services would allow eHarmony not only to keep its old customers through different stages in their lives, but it is also an opportunity to target an entirely different niche of customers that might not be interested in dating services. For instance, there is a market for parents who need advice with respect to their children. These parents have numerous questions and concerns regarding their children’s behavior, education, and health, among many other issues, and they don’t have an identifiable source for answers or forum for sharing knowledge on these critically important subjects. eHarmony could serve as a source for important information for people, whether through postings of information or providing direct access to experts in specific fields, and the company could also serve as a forum for people to share their experiences with others who might be coping with similar circumstances. Furthermore, the new services would reinstate eHarmony’s position in the market as a family-oriented company and provider of services, creating an image of a website which supports long-term and serious relationships. Finally, Doctor Warren’s reputation in the area of relationship counseling would be very attractive for potential eHarmony customers since people who are familiar with or who have researched the subject are aware of his distinguished career and regard him as an expert.
BackgroundThe company that I have chosen to look at is Technics SL Ltd, a subsidiary company of Technics Ltd, which is now owned by Panasonic. Technics main purpose of business is home entertainment systems but Technics SL Ltd concentrate their efforts toward turntable production. They currently produce 2 products, the SL1200MK2, SL1210MK2. (Appendix 1)•Technics announced the world's first direct ...
eHarmony’s investment in this option is less costly than the other options, since most of the research has already been performed. Moreover, eHarmony has already developed the necessary expertise in managing this type of business, so the company can apply its wealth of knowledge, which it has accumulated over many years, to the goal of attracting new customers to the new services. Adding a network that focuses on every stage of a person’s life, rather than just the dating part of single life, is a strategic and long-term growth play for eHarmony. The company will not only retain individual customers for longer periods of time, as former customers will likely revisit the website to survey options to address new and different concerns in their lives, but the company will also be targeting a new market segment with a much wider range of prospective customers.