Competitive strategies adopted by nongovernmental organizations dealing with HIV-AIDS in Kenya to cope with increased competition for funding
Competition in an industry is rooted in its underlying economic structures and goes well beyond the behavior of current competitors (Obado 2005). The level of rivalry or competition in industry therefore is determined by the concentration ratio of industry. Rivalry is low if the larger proportion of market share is held by a few large firms and high when the industry is fragmented. The NGO industry is one such industry that has a high number of concentrated players-Porters generic model is therefore a powerful tool for systematically diagnosing the chief competitive pressures in a market and assessing how strong and important each one is. For public service organizations however, the concern is with an equivalent issue: the bases on which the organizations chooses to sustain the quality of its services within a greed budgets i.e. how it provides best value. To survive in today's highly competitive environment whether for profit making or not any organization must achieve at least temporarily a competitive advantage. Differentiation strategy focuses not only on being unique but extends beyond the characteristics of the product or service to encompass every possible interaction between the firm and its customers. In the NGO industry it might be accomplished by applying narrow focus or broad based strategies. It therefore requires a well thought out tack tick to outmaneuver competitors and have access to funding.