Mate1.com: Digital Dating Dilemma
(7 pages of text)
In 2017, a successful online dating company, Mate1.com, based in Montreal, was pursuing a two-year goal of increasing revenue by 50 per cent and net operating margin by 15 per cent. However, its ambitions were being hampered by unavoidably high advertising costs, an inadequate reporting system, and a maturing industry life cycle. Should the firm explore new business models and consider acquiring a competitor—or was it time to divest and sell the firm?
The case can be used in a core information systems course or in e-commerce or marketing electives at either the undergraduate or the MBA level. The case presents students with the opportunity to do the following:
- Examine key metrics used by firms that rely on online/digital marketing.
- Explore business model sustainability and alternative online revenue-generating models.
- Consider multiple information technology–business strategy options (i.e., steady-state, expand, divest).
Arts, Entertainment, Sports and Recreation
Canada; United Kingdom; United States, Small, 2017
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