Application of Ansoff's Product/market Growth Strategies in Community Based Organizations in Kisumu East District, Kenya

Abstract

The purpose of this study was to establish the extent to which CBOs in Kisumu East District apply Ansoff s Product Market Growth Strategy. In this context the study examined the four Ansoffs growth Strategies namely: Market Penetration, Market Development, Product Development and Diversification Strategies. The study was descriptive in nature. The population of interest consisted of Community Based Organizations in Kisumu East District which numbered 223 CBOs. Given the large number of CBOs, a sample size was targeted and random sampling conducted. Primary data was collected using a structured questionnaire administered to the respondents through drop and pick later method. Out of a targeted sample of 69 CBOs, 59 of them responded giving 85% response rate while data was analyzed using mean scores, standard deviation and t-tests. Findings showed that CBOs apply all the four growth strategies with market penetration being the most widely applied. The respondents stated relevance in services/products offering as the most influencing factor to their strategic choice while attracting donor funding remained the least. On views on how to improve on the capacities and growth of local CBOs, majority respondents expressed improved funding, improved community mobilization and improved method of service/products delivery as most applicable. Study findings present market penetration strategy as the most preferred through free added services. This is an indication of what heads of CBOs should pursue in order to achieve their organizational growth. Pursuit of Relevance in service offerings and competition are leading factors influencing choice of strategy. While the study served to fill a knowledge gap, it has well opened more areas like exploring levels of competition within CBOs by scholars. The fact that there is growth in CBOs should inform the Government and other nongovernmental organizations that CBOs have a role to play in achieving millennium goals. Thus, handling of CBOs operational limitations like lack secure and permanent facilities are crucial dimensions for their growth.