Market Core · Competitors · Module

Reading their strategy

What a competitor is trying to become, inferred from where they invest, who they hire and what they decline — more predictive than anything they publish.

The idea

How it works

Porter’s competitor analysis asks four questions: what are they trying to achieve, what do they believe about the market, what are they currently doing, and what are they capable of. All four are answerable from public behaviour.

Hiring is the most under-used signal. What roles a competitor is recruiting for, in what volume and in which locations, describes their next two years more accurately than their marketing does.

Working with it

In practice

  1. 01

    Read the hiring

    Job adverts are a published roadmap. Volume and role type say where the investment is going.

  2. 02

    Note what they walk away from

    Segments they stop serving and features they deprecate say more than announcements.

  3. 03

    Infer their assumptions

    What must a rival believe about the market for their behaviour to make sense? Where that belief is wrong is your opening.

  4. 04

    Write it as a prediction

    State what you expect them to do in twelve months. Checking it later is the only way to know whether the reading works.

One level in

The components of reading their strategy

A component is something that exists afterwards which did not exist before — a deliverable or a mechanism, not an intention.

  1. The signals

    Hiring, investment, pricing moves and withdrawals — the observable behaviour.

    Learn
  2. The inferred intent

    What they appear to be trying to become, and what they must believe.

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  3. The prediction

    What is expected next, recorded so the reading can be checked.

    Learn

Job adverts are a published roadmap. Volume and role type describe a competitor’s next two years.