Competitor analysis frameworks evaluate how a company is performing compared to other competitors. This helps businesses identify areas of weakness where other companies are excelling. With this information, companies can prioritize both growth and success within the industry.
How Competitor Analysis Can Help Your Job Search
Believe it or not, a competitor analysis framework is just as beneficial to you as it is to a company. When applying for a job, you can perform a competitor analysis to see how you compare to other candidates. This can help you identify areas you need to work on, and unique skills you can use to your advantage. The following is a step by step guide to complete your own using one competitor analysis framework called the “Porter’s Five Forces”.
Porter’s Five Forces
Porter’s Five Forces takes a closer look at the competition and how they compare to you as a prospective job candidate. You’ll have a better understanding of where you need to catch up, as well as where you’re above the competition. Before getting started, print out this Porter’s Five Forces worksheet and grab a pen or pencil.
The following five forces are what you will focus on in this framework:
1. Existing Competitors
This section will focus on other applicants applying to the same position as you. In the workforce today, competition is very fierce. It’s likely a hiring manager will receive a high amount of applicants for the position you desire. In this section, brainstorm potential candidates you think are applying to the position. This can include previous interns, college graduates, or feeder positions to the role.
2. Bargaining Power of Buyers
In the job search process, those applying represent the buyers in your framework. You are one buyer out of hundreds. In this section, you will address what you can offer to a prospective company. Compare your offers to the position you are applying for and its prerequisites. Then think about how you can bargain with your employers if you get hired. For example, if you can bring more to the table than others, it would make sense for you to ask for a higher pay rate.
3. Bargaining Power of Suppliers
Your employers have the same bargaining power you have as a buyer. Depending on what kind of candidate they want, a company may offer certain benefits and perks for its employees and open positions. This can even attract some potential applicants to apply to the position. In this section, list out what the position and company you are applying to are offering up as a bargain.
4. The Threat of New Alternatives
Technology is growing faster than ever and presents a threat to us as potential candidates. Many jobs today operate with automation. AI and newly developed technology can sometimes have the power to beat us out of the competition. In this section, you’ll want to think about any alternatives the hiring manager may turn to in this position. Alternatives can include many things, but automation is just one example.
5. The Threat of New Entrants
New entrants are the people jumping into the job search process. This can be employees who took a break from working or those who are new to the area. Some new entrants may have an upper edge against you in the application process. In this section, you’ll want to brainstorm potential new entrants. Elaborate on ways they may outshine you in an application, and how you can stay competitive.
With competition on the rise, finding a job can feel stressful and difficult. A competitor analysis framework is a great way to keep yourself on the upper end of the competition. Identifying your weaknesses and strengths can also prepare you for future interviews.
To learn about strategies you can use to land the job of your dreams, check out Jobhero’s post for more competitor analysis frameworks you can use in your job search today.