Some analyses of the job search platforms industry, how Monster.com sit on its technology and non customer centric business model while projects like Indeed and Linkedin were growing their public consensus undisturbed. In the last slide a solution model. The strategy implementation part (what, when, how and by how much) is reserved.
2. INDUSTRY ANALYSIS
BARRIERS TO ENTRY - MEDIUM
POWER OF SUBSTITUTES - MEDIUM
POWER OF SUPPLIERS - LOW
POWER OF BUYERS - HIGH
“The goal of competitive strategy for a business unit in an
industry is to find a position in the industry where the
company can best defend itself against these competitive
forces or can influence them in its favour.”
Michael Porter
INTERNAL INDUSTRY RIVALRY - HIGH
• Relatively affordable technology
• High brand awareness influence
• High geographical diffusion influence
• Low legal barriers
• Relatively cheap service providers
and M&As with innovative start-ups
• High switching costs
• Medium service differentiation
• High price influence
• High established networks influence
• Medium head hunting agencies influence
• Low job boards influence
• High social media influence
• High number of start-ups on the scene
• Growing number of tech and social
media giants interested in the industry
(e.g. LinkedIn through Microsoft, Google
Hire, Facebook Recruiting)
Author: Daniele Mulattieri - Source: Public information
3. CURRENT COMPETITION
Acquired by
Acquired by
STRENGTHS WEAKNESSES
• Diffusion: leading professional social media,
online recruiting and networking platform
• A Microsoft company: huge financial and
technological power
• It makes applications easy
• Recruiters can’t live without due to best
price/benefit ratio
• Closed system (not open to developers)
• Limited candidates talent expression
• Tendency to Facebook-like usage
• No competences check
• Several segments underserved: IT, healthcare,
blue collars, youths
• Key words based job search and filtering
• Expensive
• Many unhappy customers with no valid
alternatives at the moment
OPPORTUNITIES THREATS
• Extend the offer of services
• Lower price
• Maintain the leadership
• Under attack from Facebook, Google, Glassdoor
and many startups
• His own business model allows disruptors to
take over
STRENGTHS WEAKNESSES
• Diffusion: leading job board (aggregates job
listings from several sources)
• Old fashion technology
• No networking capabilities
OPPORTUNITIES THREATS
• Change the business model
• Lower the price
• Google may contrast Indeed’s results showed, de
facto breaking up its core business
STRENGTHS WEAKNESSES
• Diffusion: leading social media, 1,6 billion active users
• Huge financial power
• Can potentially reach everyone
• No professional core business
OPPORTUNITIES THREATS
• Leverage its diffusion to become the only social media
used, for both leisure and work
• Candidates perception: non professional
• Privacy: candidates don’t want to mix up
their professional and social life, same with
the related profiles
STRENGTHS WEAKNESSES
• Salaries information and interview tips leader • No networking capabilities
• No diffusion among job seekers
OPPORTUNITIES THREATS
• Develop a better technology and value
proposition needed to aggressively conquer
market share in the recruiting competitive
landscape
• May die due to competitors power
Author: Daniele Mulattieri - Source: Public information
4.
5. STRENGTHS
• World information leader
• Huge technology and financial power
• Unique brand awareness and global
diffusion
OPPORTUNITIES
• Leverage data, accounts, brand and
technology to become a leader in the
online recruiting industry
THREATS
• Candidates worry for their privacy
• As a networker Google failed ones,
hence could fail again
• Dimension and diversification may
mean that Google wants just to
capitalize its data
WEAKNESSES (relative)
• Lack of hiring industry specialization
Author: Daniele Mulattieri - Source: Public information
9. Monster Glassdoor Indeed CareerBuilder LinkedIn
LinkedIn
growth phase
1st LinkedIn
disruption phase
2nd LinkedIn
disruption phase
1st Indeed
disruption phase
2nd Indeed
disruption phase
2003
• Born
• Gets funds by
Sequoia Capitals
2004
• Introduces new
features like groups
• Partners with American
Express to promote
products to SME
2005
• Introduces its 1st business
line: Jobs and Subscriptions
10 members
100,000 members
1,600,000 members
4,200,000 members
2006
• Introduces public profiles,
recommendations and
people who you may know
8,000,000 members
2007
• Dan Nye succeeds to
Reid as CEO and clears
vision and strategy
2008
• LinkedIn goes global
• French and Spanish
websites are
launched
17,000,000 members
2009
• Jeff Weiner
succeeds as CEO
32,000,000 members
2010
• The year of the
hyper-growth
• First cash flow
profitable year for
the company
56,000,000 members
2011
• LinkedIn is listed
on the NYSE
120,000,000 members
2012
• Website
rearchitecture
150,000,000 members
2013
• LinkedIn grows at
the pace of 2
members/second
277,000,000 members
2017
Reached 400,000,000 members,
LinkedIn is now a Microsoft
company acquired for the
record price of $26,2 billion
WORLDPOPULARITY
LINKEDINHISTORY
Author: Daniele Mulattieri - Source: Public information
10. Monster Glassdoor Indeed CareerBuilder LinkedIn
LinkedIn
growth phase
1st LinkedIn
disruption phase
2nd LinkedIn
disruption phase
1st Indeed
disruption phase
2nd Indeed
disruption phase
8,000,000 members
2007
• Dan Nye succeeds to
Reid as CEO and clears
vision and strategy
2008
• LinkedIn goes global
17,000,000 members
2009
• Jeff Weiner
succeeds as CEO
32,000,000 members
2010
• First profitable year
for the company
56,000,000 members
From a mere business tool
LinkedIn adapted to be a
platform for networking with
feeds, news and other features
Self-explanatory: going global it
reached more people and
geographic areas, also
expanding its networking power
Developed and executed
the company’s strategy
to address the
accelerating demand for
LinkedIn’s products and
services on a global basis
Self-explanatory: the
volume reached allowed
profit to occur
Indeed’s reasons for growth are mainly 2:
The business model: by aggregating from
different sources and not proprietary listings
only, the company got faster diffusion among job
seekers who could find more job posts on a
single board
The acquisition from Recruiting Co
WORLDPOPULARITY
Author: Daniele Mulattieri - Source: Public information
11. 101.884
260.885
523.582
859.674
1327.737
1877.195
79.309
155.848
258.278
362.36
454.5
581.328
61.906
105.456
190.449
306.511
436.53
532.388
2010 2011 2012 2013 2014 2015
Talent Solutions Marketing Solutions Premium Subscriptions
LinkedIn is in its Maturity phase
(Monster is in its Decline phase)
LinkedIn strengths:
• It is social and well known everywhere
• Attractive for recruiters searching passive
candidates (e.g. from competitors)
• Attractive for candidates willing to build
connections, read and post comments, find
job opportunities easily aggregated
• Powerful company’s branding
• Feeds
176.975
353.834
619.485
94.115
111.422
125.142
9.215
28.8
66.099
47.646
59.658
70.02
47.463
109.995
217.342
85.656
110.654
132.634
9.446
29.56
69.383
49.425
64.997
85.875
0
200
400
600
800
2010 2011 2012 2013 2014 2015
REGISTERED MEMBERS
(IN THOUSANDS)
US Canada and LAC EMEA APAC
REVENUE BY PRODUCT (IN MILLION OF DOLLARS)
Last but not least, LinkedIn is spending a lot!
US users explosion and the Talent Solution
product are LinkedIn success/revenue drivers. It
became the target of both Facebook and
Glassdoor. A bloody battle is unavoidable
LINKEDIN ANALYSIS
Linkedin’s weaknesses:
• Privacy: not all love the idea of professional
social network (e.g. IT profiles)
• Rigidity: no presentation tools for
candidates nor freedom of data retention
for recruiters
• Closeness: scarce system openness to
developers
• Expensive
• Doesn’t fully solve the networking problem
(real useful contacts)
• Doesn’t solve all job seekers’ problem
(managerial target)
CONCLUSION
Author: Daniele Mulattieri - Source: Public information
12. MONSTER POPULARITY
GROWTH MODEL
CONVERGENCE AREA
NEW MARKET
SPACE
CREATED
POPULARITY
HIRE INDUSTRY
REVENUE
In order to get new
competitiveness, Monster has
the opportunity to pursue a
path external to the
convergence area, gaining
both benefits from the direct
competition avoidance and
from a no trends driven, highly
perceived value proposition,
reaching a leading market
position in the HR industry
Competitors business models
(and related imitators) will
likely converge into a non
extended competitive area. By
offering little diversification to
customers they allow for
disruptions to grow from the
bottom
The scarce imitability comes
from the combination of a
unique pro-active approach to
customers, a pricing structure
and a flexibility not easily
sustainable by giants
Author: Daniele Mulattieri