Project Experience

New Rivals - Business-to-business services…The Internet has dramatically impacted the employment services industry.

Client Situation
One of the industry changes wrought by the explosive growth of the Internet is a major shift in how companies recruit employees. Employers are increasingly turning to more cost-effective on-line recruiting strategies. While the quickest route is to post open positions on well-established, high-traffic, job-hunting sites, many large employers are also developing their own extensive Web-based recruitment strategies. The result: a dramatic drop in the power of traditional recruitment firms. In order to effectively reposition itself against these aggressive new rivals, a leading recruitment firm engaged our services to provide a competitive assessment of the marketplace for recruitment services.

Fuld Approach
We used Porter's Five Forces model as a framework for our analysis, which provided an objective foundation for our client's strategic planning process.

Benefits and Implications
Our recommendations enabled our client to develop a Web-based recruitment tool that effectively leveraged our client's established expertise in recruiting and screening candidates.
For more information on effectively fighting new entrants in your business-to-business segment of financial services, please contactlscanlon@fuld.com or lboothroyd@fuld.com.