Executive Summary
Bumble Inc is the primary player in the digital dating sphere. The company recently expanded its services and now offers professional networking services going by the name Bumble Bizz. In regard, Bumble Bizz works to leverage typical swipe mechanisms in most dating sites, a user profile, and a matching system that facilitates business networking as well as creating meaningful and productive relationships. The company’s user base is constantly growing. However, Bumble Bizz lacks effective brand awareness, especially among the younger generations, including Gen Z, the female demographic. Typically, Bumble Bizz’s current messaging and promotional strategy targets Gen Z. the only problem lies within brand awareness within their target market. Even though some of their features are geared toward the females, younger females are not as conversant with the company as older females. However, the market for both professional and personal networking is consistently growing as young female college students seek to define their careers as self-starters or entrepreneurs. Many young females, in this case, are trying to avert the traditional roles. Therefore, Bumble Bizz must ensure that they can effectively offer the services required by this population in order to remain relevant in the market. For communication purposes, Bumble must ensure to incorporate various social media platforms since social media is common among young females. The company can also explore the use of campus partnerships and experiential marketing to increase brand awareness among the Gen Z population.
SWOT Analysis Bumble
A SWOT analysis is a tool used to conduct a situation analysis by analyzing the company’s strengths, weaknesses, opportunities, and threats. This analysis focuses on the company’s internal and external factors. In this case, Bumble’s biggest strengths include its new dating position where women take the first step. This is an important angle of the company as they emphasize their brand, which is also considered feminist and modern. According to various studies, Gen Z tends to value authenticity as well as social empowerment, which has been influenced by Bumble as they try to represent their feminist values thus helping in the creation of a loyal customer base. However, the greatest threat, in this case, is that Bumble is constantly competing with the dating-app giant, Tinder. Another threat revolves around the oversaturation of dating apps and sites in the market. However, potential opportunities for the company include being able to turn their competition with Tinder into an opportunity by bringing in some of Tinder’s clients on board due to the large demand for online dating. In terms of weaknesses, Bumble faces issues related to inadequate security as well as misuse of the platform by fraudsters. Typically, Bumble cannot verify that an individual is a fraudster.
Five Force Analysis of Bumble
Porter’s five forces is a model used to identify and analyze five competitive forces in order to determine the weaknesses and strengths in an industry. In this case, Porter’s five forces are applied in order to identify the structure of the industry to help in determining corporate strategy, which further results in an analysis of economical conditions geared towards long-term profitability. Therefore, in Bumble’s case, applying Porter’s five forces can determine its competitive environment. Here, the number and power of Bumble’s competitive rivals, as well as any new market entrants and customers, influence their profitability. Thus, this model can be used as a guide toward Bumble’s profitability.
Factors that Drive Bumble’s Success
Some of the factors that drive Bumble’s success include focusing on social media platforms, its target market, and its competitive advantage. In terms of social media, the company has formulated a strategy that allows them to communicate, advertise their service and connect with their consumers through their various social media platforms. Additionally, they target women and mostly young women who tend to use social media more. Furthermore, the company targets Gen Z, which has become very popular among women, and strives to ensure that the values posited by Gen Z are incorporated into the business. For instance, on Bumble’s dating site, the women make the first move. Therefore, it is highly considered modern and feminist as opposed to other online dating sites. The company’s competitive advantage also promotes its success. It is important to note that its main competitor is Tinder. However, through its competitive advantage, Bumble has managed to bring Tinder customers on board, specifically the women, because it offers a platform where feminism is not shunned, and women make the first step. Looking at the online dating industry, customers tend to be fascinated by new ideas, and since Bumble offers a unique experience, many Tinder customers have made a move to Bumble in order to experience this uniqueness.
Major Risks/Strategic Issues for Bumble
Some of the risks or strategic issues, in this case, include cybersecurity, competition, regulations, and litigation issues, as well as debt and brand operations. Cybersecurity has become a significant issue in the age of technological advancements. In this case, Bumble uses social media platforms that are subject to hacking by criminals to communicate and connect with their customers. Through these same social media platforms, the company may also face risks of customers being cyberbullied. Additionally, competition in the online business industry is becoming stiff by the day due to new entrants and the fact that many dating companies are constantly flooding the market. Therefore, the company risks losing its relevance if they do not stay at par with the current trends that enable them to keep its customers interested in its services.
From an eye test, Bumble’s finances are constantly improving, as supported by the figures in its financial records. Typically, the one thing that stands out within these figures is that the company profits constantly remain positive. Additionally, there are no losses recorded as the profit margins are positive with a clear difference in what was made in each year.
As such, the company is a worthwhile investment, and going public is going to make it even more successful. There are various reasons why Bumble is a worthwhile investment. For instance, the company’s strategy puts it on par with its competitors, such as Tinder. However, it is also able to take some of its company’s clients because of its unique services and products. Since most of the clients in the online dating industry are women, it is important to note that the company capitalizes on Gen Z values to ensure their clients are able to get better services and experiences with their platforms, thus promoting customer loyalty. And with customer loyalty, there is a high chance that its customer numbers will keep increasing, thus making it a good investment because it promises good returns.
References
Yahoo is part of the Yahoo family of brands. Finance.yahoo.com. (2022). Retrieved 9 April 2022, from https://finance.yahoo.com/quote/BMBL/financials/?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAACNC98Vbyzk6n1eFjLwr33ck8_qur8C_BI_OX_qrwTLqxb9u7CDR4tFNbjjpMxD50BD8pXSA9mKHdARX5XLYQS7zJyZk93ESIqhlM-nPoh7yOdDDJdZLBQ1JbOqq7Ms5VczV61pOvGlRWWN045fL5e7B5_gm4l0ANwga_7tsmMeC.
write