Winning approach to answering "Why should we hire you?"

Winning approach to answering "Why should we hire you?" question by Mikhail Portnov, Founder and CEO of Portnov Computer School, specializing in Career Training and Job Placement in the field of Software Quality Assurance (Software Testing).
Out of many common interview question the "Why should we hire you?" (sometimes "Why should I hire you?") question is probably the most confusing one. Hundreds of career books are answering the "Why should we hire you?" question. Thousands of web site are trying to answer the "Why should we hire you?" question. And still there is no one-size-fits-all answer.
It happens for a very simple reason – approaching that question in a straight forward manner we are not able to produce a sound answer:
* we do not know the competition (other people applying for the position)
* even if we do know them our judgment cannot be exactly identical to the judgment of decision making people at that company
* moreover, the hiring decision is not necessarily 100% logical. It might be somewhat (or sometimes very much) emotional
So, with all that said how do we approach answering the "Why should we hire you?" interview question? Why employers ask that question anyway? Is that just another way of asking "What can you do for our company?"
First and foremost the employer is trying to find out if you are really confident in yourself and your ability to successfully perform the job duties. Also your answer might demonstrate your actual interest in the position if you show that you did the research on the company, its products, technology, job requirements.
Another aspect: being unprepared to answer that question practically disqualifies the candidate.

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