Swimming in the Virtual Community Pool with Plentyoffish

Daniel Martinez

Bus 243

Professor Wayman

September 20, 2016

SWIMMING IN THE VIRTUAL COMMUNITY POOL WITH PLENTYOFFISH

  The nature of competition in this industry is correlated with real time sales, with PlentyofFish revenues being generated through strictly advertisements, the nature of competition in this industry lays within online traffic and membership activities. Now that the New York Times has noticed PlentyofFish success, competitors will react quickly. A competitor will be interested in Frinds business model, and how he structured his company to have low cost overhead expenses (Given he is the only employee). Frinds business model is a success, it’s generating $10 million a year, and only being operated by himself. His business model met the need of the market that his competitors where not supplying; a free online dating website whose website slogan spoke for itself “100% Free, Put away your credit card.” This gave PlentyofFish the competitive advantage.

  There can be many strategic goals for growing the business forward, as similar to some of the mentioned social media giants (Facebook, Myspace, Craigslist, Match.com, Friendster, and LinkedIn) in the article. Finding a database application would raise to the top of PlentyofFish priority given the large influx of new users entering the site and becoming new members, to accommodate such events Oracle and Microsoft SQL Server are suggested. Aside from addressing the database management system, PlentyofFish should strategically shadow one of the business models of the mentioned social media platforms above. With all this being said, the choice to sustain, grow the business, or sell it is the greatest problem to have as an entrepreneur. The best business model in my opinion going forward would be to still continue with a free website, and to also continue to expand traffic (more members, more page views, more countries or niches). I say this because its simply law of large numbers, the higher the activity rate entering the site will result in greater revenues. However, this business model must not be so prudent, in order to leave room to accommodate to the changes in the social media/dating sites markets. Frinds can sustain and continue to grow the business, however, my concern is the lack of innovation of his website and his wealthier competitors.