Mate1 Com Digital Dating Dilemma Case Solution

The second problem that the company faces is an unestablished brand image and low profit margins per customer. This is because each new customer is attained after a significant amount of money spent on marketing. The company does not invest in search engine optimization due to unknown reasons. The suggestions include investment in SEO, acquisition of a free subscription model company, and develop a model that assures that sales of the two models are complementary rather than coinciding. 

2. Background and Central Issues

Mate1 is an online matchmaking site for individuals between the ages of 35-65 years. The case protagonist is the vice president of operations for the company. His focus is on developing a collegial work environment. 90% of the subscriptions were made as a result of paid marketing on Facebook and other online platforms while the remaining was based on organic searches. The company’s strategy included not investing in search engine optimization (SEO) for reasons not mentioned in the case. 

The current advertisement driven model is not scalable as it results in low profit margins from each subscription. An increase in data resulted in a requirement for server upgradation which was a low-cost solution to frequent server crashes. Mate1 could also revert to a free subscription model generating profits from advertisements. The current strategy and model needs to be critically analyzed to make recommendations to improve business profitability.  

3. Porter’s Five Forces Model

i. Bargaining Power of Suppliers

According to the case, Facebook is the supplier of an advertisement platform for Mate1. The bargaining power of suppliers is moderate. 

ii. Bargaining Power of Buyers

The bargaining power of buyers or subscribers is high because of the fact that there are several options available to them. 

iii. Threat of Substitutes

The threat of substitute services is high because Mate1 does not have an established brand image or renowned brand name. 

iv. Threat of New Entrants

Since dating applications and websites can be developed easily and marketed through Facebook, Google and other social media platforms, the threat of new entrants remain high in this industry. 

v. Existing Rivalry 

There seems to be a high rivalry among the competitors because it is stated in the case that the US market is the most developed and most competitive in the industry. Large companies increased their market share through strategic acquisitions. 

4. SWOT Analysis