Harvard Case - GlobalGiving
"GlobalGiving" Harvard business case study is written by Lalin Anik, Thomas Steenburgh, Laura Steenburgh. It deals with the challenges in the field of Marketing. The case study is 17 page(s) long and it was first published on : Apr 20, 2017
At Fern Fort University, we recommend GlobalGiving implement a multi-pronged strategy to achieve sustainable growth and solidify its position as the leading platform for online philanthropy. This strategy focuses on enhancing its brand positioning, expanding its reach through strategic partnerships, and leveraging technology to optimize its platform and user experience.
2. Background
GlobalGiving is a non-profit organization that operates an online platform connecting donors with vetted non-profit organizations around the world. Founded in 2002, GlobalGiving has facilitated over $300 million in donations to over 20,000 projects in 170 countries. The case study focuses on the organization's challenges in scaling its operations and achieving financial sustainability while maintaining its mission of connecting donors with impactful projects.
The main protagonists in the case are:
- Mari Kuraishi: GlobalGiving's CEO, who is tasked with leading the organization towards sustainable growth.
- The GlobalGiving Board: Responsible for overseeing the organization's strategic direction and financial performance.
- The GlobalGiving team: Dedicated to connecting donors with impactful projects and managing the platform's operations.
3. Analysis of the Case Study
To analyze GlobalGiving's situation, we can utilize the following frameworks:
1. SWOT Analysis:
- Strengths:
- Strong brand reputation for trust and transparency.
- Extensive network of vetted non-profit organizations.
- Established online platform with a global reach.
- Experienced team with a passion for social impact.
- Weaknesses:
- Limited marketing budget compared to larger platforms.
- Dependence on individual donations for revenue.
- Lack of robust data analytics and user segmentation.
- Potential for competition from other online giving platforms.
- Opportunities:
- Growing global demand for online philanthropy.
- Potential for partnerships with corporations and foundations.
- Integration of new technologies like AI and blockchain.
- Expansion into new markets and project categories.
- Threats:
- Increasing competition from other online giving platforms.
- Economic downturns impacting donor generosity.
- Regulatory changes impacting non-profit operations.
- Security risks associated with online donations.
2. Porter's Five Forces Analysis:
- Threat of New Entrants: Moderate, as the barrier to entry is relatively low with the development of new online platforms.
- Bargaining Power of Buyers: Moderate, as donors have a wide range of options for giving, but GlobalGiving offers unique features like vetted projects and impact reporting.
- Bargaining Power of Suppliers: Low, as GlobalGiving relies on non-profit organizations, which are generally eager to participate in the platform.
- Threat of Substitutes: Moderate, as other forms of giving like direct donations or charitable giving through other organizations exist.
- Competitive Rivalry: High, as GlobalGiving faces competition from other online giving platforms like Charity Navigator, GoFundMe, and Kiva.
3. Marketing Analysis:
- Target Market: GlobalGiving's target market consists of individuals and organizations seeking to make a positive impact through charitable giving. This market can be segmented further by demographics, giving preferences, and philanthropic interests.
- Marketing Strategy: GlobalGiving's current marketing strategy relies heavily on word-of-mouth and organic reach. However, there is room for improvement through a more targeted approach utilizing digital marketing channels, content marketing, and influencer partnerships.
- Brand Positioning: GlobalGiving's brand positioning emphasizes trust, transparency, and impact. This positioning needs to be reinforced through consistent messaging and a clear value proposition for donors.
4. Recommendations
1. Enhance Brand Positioning and Marketing Strategy:
- Develop a clear and compelling brand story: Emphasize GlobalGiving's unique value proposition, highlighting its commitment to vetting projects, ensuring transparency, and maximizing impact.
- Implement a data-driven marketing strategy: Leverage analytics to understand donor behavior, segment the target market, and tailor marketing messages accordingly.
- Expand digital marketing efforts: Utilize social media, search engine optimization (SEO), and paid advertising to reach new audiences.
- Develop engaging content marketing: Create compelling stories, videos, and infographics showcasing the impact of donor contributions.
- Partner with influencers: Collaborate with individuals and organizations with a strong following in the philanthropy space to promote GlobalGiving's platform.
2. Expand Reach Through Strategic Partnerships:
- Collaborate with corporations and foundations: Develop joint fundraising campaigns and initiatives to attract larger donations.
- Partner with non-profit organizations: Offer incentives and resources to encourage participation and project development on the platform.
- Explore partnerships with educational institutions: Integrate GlobalGiving into curriculum and encourage students to participate in philanthropic activities.
- Develop strategic alliances with international organizations: Expand reach into new markets and connect donors with projects in underserved regions.
3. Leverage Technology to Enhance Platform and User Experience:
- Invest in data analytics and AI: Utilize data to personalize the donor experience, recommend relevant projects, and optimize fundraising campaigns.
- Improve platform usability and accessibility: Make the platform user-friendly for both donors and non-profit organizations.
- Integrate new technologies like blockchain: Explore the potential of blockchain for secure and transparent donation processing.
- Develop mobile-first platform experience: Ensure a seamless and engaging experience for donors on mobile devices.
4. Implement a Sustainable Revenue Model:
- Explore alternative revenue streams: Diversify revenue sources beyond individual donations, such as corporate sponsorships, subscription services, and impact-based financing.
- Develop a tiered membership program: Offer different levels of membership with varying benefits and access to exclusive content and events.
- Implement a 'pay-for-success' model: Reward non-profit organizations based on the impact of their projects, incentivizing higher performance and attracting more donors.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with GlobalGiving's core competencies in online platform development, non-profit vetting, and facilitating global philanthropy. They also reinforce the organization's mission of connecting donors with impactful projects.
- External customers and internal clients: The recommendations address the needs of both donors and non-profit organizations, aiming to improve the user experience for both parties.
- Competitors: The recommendations consider the competitive landscape and aim to differentiate GlobalGiving from other online giving platforms by focusing on its unique value proposition and leveraging technology to enhance its platform.
- Attractiveness ' quantitative measures: The recommendations are expected to lead to increased donor engagement, higher donation volume, and improved financial sustainability for GlobalGiving. While quantifying the exact impact requires further analysis and modeling, the proposed strategies are expected to generate positive returns on investment.
6. Conclusion
By implementing these recommendations, GlobalGiving can solidify its position as the leading platform for online philanthropy. This strategy will enhance its brand positioning, expand its reach through strategic partnerships, and leverage technology to optimize its platform and user experience. This will ultimately lead to increased donor engagement, higher donation volume, and sustainable growth for the organization.
7. Discussion
Alternatives not selected:
- Merging with another organization: While this could provide access to resources and expertise, it could also compromise GlobalGiving's independence and brand identity.
- Focusing solely on organic growth: This would be a slow and uncertain path to growth, particularly in a competitive market.
- Adopting a purely commercial model: This could alienate donors and compromise GlobalGiving's mission of social impact.
Risks and key assumptions:
- Donor fatigue and economic downturn: A decline in donor generosity could negatively impact GlobalGiving's revenue.
- Competition from other platforms: New entrants and existing competitors could erode GlobalGiving's market share.
- Technology adoption and security risks: Implementing new technologies requires careful planning and risk mitigation to ensure platform security and user privacy.
8. Next Steps
Timeline with key milestones:
- Year 1:
- Develop a comprehensive marketing strategy and implement initial digital marketing campaigns.
- Establish strategic partnerships with corporations, foundations, and non-profit organizations.
- Begin data analytics and user segmentation initiatives.
- Year 2:
- Launch a tiered membership program and explore alternative revenue streams.
- Implement AI-powered features for personalized donor experience and project recommendations.
- Expand into new markets and project categories.
- Year 3:
- Evaluate the success of implemented strategies and adjust accordingly.
- Explore the integration of blockchain technology for secure and transparent donations.
- Continue to innovate and adapt to the evolving landscape of online philanthropy.
By following these recommendations and staying agile in the face of challenges, GlobalGiving can achieve sustainable growth and continue to make a positive impact on the world.
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Case Description
Nonprofits are facing a growing challenge to retain donors. At a time when acquiring a new donor is three times as expensive as retaining an existing donor and donor attrition stands at an all-time high, nonprofits are looking to increase the lifetime value of their donors. This case presents a new means by which nonprofits can induce donors to give today and commit to giving in the future. The positive results of a low-cost, high-yield experiment conducted at GlobalGiving, one of the largest nonprofit organizations in the United States, demonstrate how seemingly small increases in the numbers of recurring donors can have a significant impact on revenue, allowing nonprofits to have an even greater philanthropic impact. This case allows for discussions on how field experimentation on crowdfunding platforms can help with the development of new business approaches and how those novel approaches can be implemented in a way that would satisfy multiple stakeholders, ranging from donors to large and small charity partners.
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