What happened to Monster.com?
- 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
- 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
- 6. Monster Glassdoor Indeed CareerBuilder LinkedIn 32 13 4Diffusion level: WORLDPOPULARITY Author: Daniele Mulattieri - Source: Google Trends
- 7. Monster Glassdoor Indeed CareerBuilder LinkedIn ITALIANPOPULARITY Author: Daniele Mulattieri - Source: Google Trends
- 8. Monster Glassdoor Indeed CareerBuilder LinkedIn SPANISHPOPULARITY Author: Daniele Mulattieri - Source: Google Trends
- 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