We all know that competitive analysis represents an integral part of the for-profit organization’s strategic planning processes. In the for-profit world organizations undertake competitive analysis because they are often competing for the same customer group in a particular geographic region with a similar product or service. However, non-profit organizations generally provide programs to a specific group that would otherwise not have access to those programs. As such, many non-profits have something like a monopoly on the programs provided to their target group within a specific geographic area.
So how then does the issue of competitive analysis enter the strategic planning process of the non-profit? The answer lies in the broader definition of “competition”. Non-profit organizations compete for resources. These resources come in the form of financial, volunteers, gifts-in-kind, access to services, etc. So although non-profits may not have competition for the delivery of their programs to their specific target group, they do face considerable competition for resources. Resources that are required in order to effectively deliver their programs.
So how do you incorporate competitive analysis into your strategic planning process? There are two basic ways:
- Devote a section of the planning process to the discussion of competitive analysis. You would use this time to consider all areas of your organization and the types and forms of resources that you compete for. Then look at which are constrained and limit you potential to achieve your objectives. Understanding these constraints will allow you to develop strategies to eliminate any gaps between the resources you have and the resources you need. If you are unable to develop strategies to eliminate the resource gaps then you need to reassess your objectives.
- Incorporate the discussion of competitive analysis into each section of your strategic planning discussion. You would still undertake the same process of determining resource gaps and developing strategies; however, it would be done on a segmented basis.
Conclusion
There is no one best way to undertake a competitive analysis. Each organization has to use an approach that’s appropriate for them. Generally the larger the organization or more complex the analysis the better it is to include competition in each section of the planning process and then review the outcomes. For smaller or less complex strategic planning processes it can often be done effectively as a separate section.
Ron Robinson is the president of ABARIS Consulting Inc. He can be reached at (519) 472-9788 or rrobinson@abarisconsulting.com. This article is provided free of charge, for information purposes only and is not intended, represented or to be inferred as providing advice. ABARIS Consulting Inc. makes no warranty, express or implied, or assumes any legal liability for accuracy, completeness, or usefulness of any information provided in whole or in part within this article.
