Competitive Possibilities Matrix

The Competitive Possibilities Matrix evaluates potential reactions of competitors, substitutes or new entrants in relation to the proposed strategies for Hogar San Camilo. As introduced in the competitive analysis in Chapter 3, Hogar San Camilo’s competitors are the local NGOs working on the HIV/AIDS field such as Inppares, AID for AIDS Peru and Impacta. As substitutes, Hogar San Camilo faces the threat that other NGOs not related to HIV/AIDS can attract the attention of potential donors. To list some of the substitutes NGOs:

Enseña Peru (education), Fondo Verde (environment), Crea+ (education) and Techo Peru (reduce poverty). Finally the new entrants are the NGOs that would like to provide services in HIV/AIDS.

6.13. Conclusions

The strategic process demands the analysis of eleven matrixes in order to obtain the best strategies for the company as well as identifying if they are aligned with the company’s vision. A generic strategy that acts as the basis for the strategies identified is one that focuses on cost leadership in a niche market size. Lower costs are essential for Hogar San Camilo’s

Table 16

Long-Term Strategies vs. Objectives Matrix

Vision:

To be recognized by 2020 as a reference in Peru and Latin America regarding holistic wellbeing support to people affected with HIV/AIDS

and their families, allowing them the opportunity to live a dignified, happy and healthy life.

1 Market penetration by targeting specific Peruvian companies that presently donate to Hogar San Camilo by requesting

funds for specific actual programs. X X X X

2 Follow a horizontal integration by merging the Hogar San Camilos from Lima, Arequipa and Huancayo. X X X X X

3 Follow a retrenchment strategy concerning the present programs and activities offered in order to keep, eliminate or

merge programs. X X X X

4 Develop an internal process management strategy by developing a strategic vision for Hogar San Camilo that will

enable it to increase funding from donors. X X

operations in order to support as many people living with HIV/AIDS as they sustainably can.

This generic strategy is aligned with the mission, vision, and long-term objectives of Hogar San Camilo. The strategic process to obtain Hogar San Camilo’s strategies has been

consistent throughout the matrixes.

The SWOT matrix identified the strategies according to the strengths, weaknesses, opportunities and threats of the organization in order to develop strategies that combine these factors. This resulted in nine strategies in order to address the combination of strengths and weaknesses with opportunities and threats.

The SPACE matrix placed Hogar San Camilo in a defensive quadrant based on the internal and external determining factors where the values were defined through a joint analysis with the organization.

The BCG matrix was adapted to understand Hogar San Camilo’s operations in regards to social impact and the accountability of its main activities. The access used was therefore enrolment of patients treated and industry growth related to people with HIV/AIDS. The result was Hogar San Camilo being identified as a dog as there is low enrolment and low industry growth.

The IEM further supports the use of defensive strategies as it shows the weight value of internal and external factors. Hogar San Camilo was placed in quadrant 8 because of its average internal factor weight average and a weak external factor weight average through the EFM and IFM previously defined in Chapter 3 and 4. This suggested that Hogar San Camilo should use harvesting strategies.

The GSM compares market growth with the company’s competitive position and identified Hogar San Camilo in quadrant 3 as it has a weak competitive position in a market with slow growth. Companies within this quadrant are advised to implement drastic changes to improve their competitive position.

Table 17

Competitive Possibilities Matrix

Retained strategies for Hogar San Camilo /

Competitors HIV/AIDS NGOs NGOs non related to HIV/AIDS New HIV/AIDS NGOs

1

Market penetration by targeting specific Peruvian companies that presently donate to Hogar San Camilo by requesting funds for specific actual programs.

Copy the strategy of Hogar San Camilo by highlighting its value proposition

Promote its services highlighting the importance of the social impact for Peru for the future years.

Product development by creating new programs that donors can valuate.

2 To follow a horizontal integration by merging the Hogar San Camilos from Lima, Arequipa and Huancayo.

Improve the cohesion of the

network of NGOs: Red SIDA Peru No way to counteract No way to counteract

3 Follow a retrenchment strategy concerning the present programs and activities offered in order to keep, eliminate or merge programs.

Increase the programs they offer.

Market development. Increase the programs they offer.

Market development. Increase the programs they offer.

Market development.

4

Develop an internal process management strategy by developing a strategic vision for Hogar San Camilo that will enable it to increase funding from donors.

Copy the strategy of Hogar San Camilo by improving its credibility in order to increase funding

Copy the strategy of Hogar San Camilo by improving its credibility in order to increase funding

Copy the strategy of Hogar San Camilo by improving its credibility in order to increase funding

Together the matrixes suggest that the Hogar should follow the alternative strategy that focuses on defensive actions. In this sense, the four retained strategies are defense strategies for Hogar San Camilo. The Hogar should make changes to the present operations, follow cost control, retrenchment and consolidate present donors.

The four retained strategies proposed for San Camilo are feasible and consistent with the Hogar’s ethics and resources. In addition, the strategies are ethically accepted and are aligned with the Hogar’s long-term objectives for 2020. By following the four proposed strategies, Hogar San Camilo should be able to reach its vision by 2020.

Chapter VII: Strategic Implementation