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This exam is written in reference to the eHarmony case material contained in the course packet. All questions should be answered. Your answers will be graded on the basis of how well you utilize course concepts to frame issues and justify your arguments, as well as how well you utilize the qualitative and quantitative data provided in the case material to support your position. Take particular care to support your arguments with data from the case. Please limit your answers to one single space typewritten page per question. Unlimited diagrams and tables can be used as supplements. To supplement the information from the case, make whatever assumptions you need to make in order to answer the questions. Please do NOT incorporate information from other sources. All of the information that you need to answer the questions successfully is supplied in the case material. Each of the four questions counts 25% toward the total score on the exam.

NOTE: This is an INDIVIDUAL assignment, and the Stern Honor Code will be strictly enforced.

When completed, please email your answer document to [email protected] no later than 9 am on Monday, Jan 21st 2013. Label your document file with your last name, as in YOURLASTNAME_Exam. Please only send in a single file with all diagrams included. Only a .do

1. How structurally attractive is the on-line personals market? Why?

2. Does eHarmony have a competitive advantage in this market (i.e., higher WtP and/or lower OC than rivals)? If so, where does this advantage come from, and why?

3. What are the competitive and substitution threats facing eHarmony? How serious are they? Why? Is eHarmony’s position sustainable? Why or Why not?

4.Evaluate eHarmony’s options. Which should eHarmony choose, and why?

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