Application of Growth Strategies at the Kenya Association of Manufacturers

Abstract

Business Membership Organizations (BMOs) may not necessarily be profit making organizations but they definitely need to be financially sustainable to survive. Traditionally, BMOs have been overly dependent on their members’ subscription fees and occasional donor funding for their sustainability. This comes at the expense of little or no emphasis on exploring new avenues of generating income for themselves. However with the changes in the business environment and the resultant high cost of doing business it has become imperative for BMOs to show value to their members by proving the reason for their existence in order to sustain the existing members’ loyalty and attract new ones. Companies are no longer willing to pay BMOs as a formality, not to mention that the BMOs financial needs are also increasing. As such BMOs are being forced to look beyond subscriptions. They are now making a conscious decision to develop their growth strategies by building on existing services while adding on others. The services rendered by the BMOs are quickly becoming a prerequisite for not only attracting new members but also sustaining existing ones. BMOs like KAM need to make a conscious decision to plan for their future growth by optimizing on the opportunities that exist in the environment while mitigating the threats. Whereas KAM has experienced significant growth in its membership and achievements in the past decade, there is increased pressure and demand for more value in order to sustain its high standing. This study aimed to assess how the Association can ensure its growth and sustain its members (and consequently attract new ones) through the application of AnsofFs growth strategy in its service provision. The research was conducted by way of a case study to allow the researcher to focus on in depth data of the association hence come up with implementable conclusions and recommendations for the Association and other beneficiaries of this study. Whereas the study shows that KAM has made serious attempts to apply the Ansoff growth strategy in its service offering, namely through market penetration, market development and product diversification, there is little that KAM has done in terms of diversification. The study also confirms that KAM's current market largely remains to be manufacturers and the Association already has an array of services offered to its current market. The study further reveals that KAM services have successfully penetrated new sectors and that there is still room for improvement for KAM within its current market and beyond first with the services it already has, thereafter with new services. From this study, KAM’s main opportunity lies in market development.