Swimming In the Virtual Community Pool with Plenty of Fish External Analysis Essay
Swimming In the Virtual Community Pool with Plenty of Fish External Analysis
PlentyofFish is the 96th most popular site in terms of page views, and the most popular online dating site in existence. This site is managed and ran by its founder Markus Frind, he is the only employer for the entire company. PlentyofFish is a free dating site that generates $10 million in ad revenues each year. This site has the opportunity to grow and prosper and set a standard that is unattainable and not easily matched by others. PlentyofFish has a business model that is currently creating them a lot of success. Their business model is that it is 100% free to its users. Free is the future of business, because PlentyofFish is free they are getting more page views per day which is an appealing platform for businesses to advertise on.
There are many seductive opportunities that Markus Frind could pull the trigger on to expand and change the ways which PlentyofFish operates their business. Markus needs to focus on the main focal points that which he originally expanded his business but also continue ongoing innovation and make his old ideas even better. Markus Frind realizes the exponential growth that the website has had and realizes that he will need more web servers to store information. Additional software and hardware is a minor cost for the company and is not a big risk to take. There are many threats that face PlentyofFish. One of these threats is fending off competition.
This site can be easily matched by others because it is a free site and all you need to run it is a program called ASP.NET. Markus Frind does not spend any money on advertising like other dating websites it is popular with its users because of ease of use and word of mouth. People in general do not like change and have a hard time switching to another dating website if it means they have to change. Another threat to the business is whether or not PlentyofFish should expand globally. If Markus Frind sees potential in international markets then by all means he should stay ahead of the game and expand his business. Porters Five Forces
The threat of a new entry in PlentyofFishs case is inexpensive to match. One would need the knowledge to program on ASP.NET but there is training available. There is very little use of customer service on PlentyofFish only having 1 employee and they have done a good job letting the user direct their own way around the site. The industry competition is all other social media networks and not just other dating websites.
Craigslist, Facebook, Twitter are some other social media outlets that get millions of page views daily. A substitute to online dating is meeting people face to face or possibly video and audio dating websites which allows you to talk to and see the other person. The customers are anyone who signs up to be a member of the website and other companies who want to advertise on the website which they make all of their revenue off of. PlentyofFish would not have any suppliers for their website. Recommendation
I do not think PlentyofFish should change their business model from what it is now. They have their main focal points of the business model and should not stray away from what is currently working. Markus Frind has revenue of $10 million and has very few expenses which is very good for a company that makes all of its money off of advertisements. In the long term he should continue innovating the company and if he sees potential overseas than he should do so to stay ahead of the competition.