Harvard Case - "Keeping the Faith"? Competitive Positioning of a Not-for-Profit Youth Camp
""Keeping the Faith"? Competitive Positioning of a Not-for-Profit Youth Camp" Harvard business case study is written by Gina Grandy, Rhian Stewart. It deals with the challenges in the field of Strategy. The case study is 19 page(s) long and it was first published on : May 5, 2015
At Fern Fort University, we recommend that Camp North Star implement a multi-pronged strategy to secure its future and enhance its competitive position. This strategy involves:
- Refining its value proposition: Focusing on its unique strengths, such as its emphasis on character development and fostering a sense of community.
- Expanding its reach: Developing new program offerings, exploring partnerships with other organizations, and leveraging technology to reach a wider audience.
- Strengthening its financial foundation: Diversifying revenue streams, optimizing operational efficiency, and implementing a robust fundraising strategy.
2. Background
Camp North Star, a not-for-profit youth camp, faces increasing competition from other camps and alternative activities. The camp's traditional model of summer camps is being challenged by evolving youth interests and the need for year-round engagement. The case study highlights the challenges faced by Executive Director, Tom, who needs to navigate these changing dynamics while maintaining the camp's core values and mission.
3. Analysis of the Case Study
Competitive Analysis:
- Porter's Five Forces:
- Threat of new entrants: High, due to the relatively low barriers to entry in the youth camp industry.
- Bargaining power of buyers: Moderate, as parents have multiple camp options but value the camp's unique offerings.
- Threat of substitutes: High, as youth have access to a wide range of alternative activities, including technology-based entertainment.
- Bargaining power of suppliers: Low, as the camp relies on a variety of suppliers for its operations.
- Competitive rivalry: High, due to the increasing number of camps and the need to differentiate offerings.
SWOT Analysis:
- Strengths:
- Strong brand reputation and loyal alumni base
- Experienced staff dedicated to the camp's mission
- Unique focus on character development and community building
- Strong financial position with a dedicated donor base
- Weaknesses:
- Reliance on a traditional summer camp model
- Limited year-round programming
- Potential for declining enrollment due to competition
- Lack of a comprehensive marketing strategy
- Opportunities:
- Expand program offerings to attract new demographics
- Leverage technology for enhanced engagement and outreach
- Develop partnerships with other organizations
- Implement a robust fundraising strategy
- Threats:
- Increasing competition from other camps and alternative activities
- Changing youth interests and preferences
- Economic downturn impacting donor contributions
- Rising operational costs
Value Chain Analysis:
Camp North Star's value chain can be analyzed through the lens of its key activities:
- Inbound Logistics: Sourcing and managing supplies, staff recruitment and training
- Operations: Camp program development and delivery, facility maintenance
- Outbound Logistics: Communication with families, transportation arrangements
- Marketing and Sales: Attracting new campers, managing enrollment
- Service: Providing a positive and enriching camp experience
- Support Activities: Fundraising, financial management, administration
Business Model Innovation:
- Value Proposition: Camp North Star's core value proposition lies in its unique focus on character development, community building, and providing a safe and enriching environment for youth.
- Customer Segments: The camp primarily targets families with children aged 8-18, but can expand its reach to include other demographics, such as at-risk youth or adults seeking leadership development programs.
- Channels: The camp currently relies on traditional marketing channels, but can leverage digital platforms, social media, and partnerships to reach a wider audience.
- Customer Relationships: Building strong relationships with campers and families through personalized communication, alumni events, and online engagement.
- Revenue Streams: Camp fees, donations, sponsorships, and potential new revenue streams through expanded program offerings.
- Key Resources: Experienced staff, dedicated volunteers, camp facilities, and a strong brand reputation.
- Key Activities: Program development and delivery, fundraising, marketing and outreach, and financial management.
- Key Partnerships: Collaboration with other organizations, local businesses, and community groups.
4. Recommendations
1. Refine the Value Proposition:
- Focus on Character Development: Highlight the camp's unique approach to character development through its activities, leadership programs, and community service initiatives.
- Strengthen the Sense of Community: Promote the camp's strong sense of community and the lasting friendships formed among campers and staff.
- Emphasize the 'North Star' Experience: Develop a clear brand identity that emphasizes the camp's unique experience and differentiates it from competitors.
2. Expand Reach and Engagement:
- Develop New Program Offerings: Introduce year-round programs, such as weekend retreats, leadership training workshops, and online learning modules.
- Explore Partnerships: Collaborate with other organizations, such as schools, youth groups, and community centers, to offer joint programs and reach a wider audience.
- Leverage Technology: Utilize social media, online platforms, and digital marketing to reach a wider audience and engage campers and families.
- Offer Scholarships and Financial Aid: Expand access to the camp for families with limited financial resources.
3. Strengthen Financial Foundation:
- Diversify Revenue Streams: Explore new revenue streams, such as corporate sponsorships, fundraising events, and licensing agreements.
- Optimize Operational Efficiency: Implement cost-saving measures, streamline administrative processes, and leverage technology to improve efficiency.
- Develop a Robust Fundraising Strategy: Engage donors through personalized communication, targeted fundraising campaigns, and online platforms.
5. Basis of Recommendations
- Core Competencies and Consistency with Mission: The recommendations focus on leveraging Camp North Star's core competencies, such as its experienced staff, strong brand reputation, and commitment to character development. They are also aligned with the camp's mission to provide a positive and enriching experience for youth.
- External Customers and Internal Clients: The recommendations consider the needs of both external customers (campers and families) and internal clients (staff and volunteers). They aim to enhance the camp experience for all stakeholders.
- Competitors: The recommendations address the competitive landscape by focusing on differentiation, expanding reach, and strengthening the camp's financial position.
- Attractiveness: The recommendations are expected to be attractive to stakeholders, as they aim to increase enrollment, enhance the camp experience, and secure the camp's future.
6. Conclusion
Camp North Star has a strong foundation and a clear mission. By implementing the recommended strategies, the camp can adapt to changing market dynamics, enhance its competitive position, and continue to provide a valuable experience for youth. The camp's focus on character development, community building, and providing a safe and enriching environment will remain its key differentiators.
7. Discussion
Alternatives:
- Merging with another camp: While this could provide economies of scale, it could also compromise the camp's unique identity and values.
- Focusing solely on traditional summer camps: This would likely lead to declining enrollment and a diminished competitive position.
- Adopting a purely commercial model: This would compromise the camp's not-for-profit status and potentially alienate its donor base.
Risks and Key Assumptions:
- Economic downturn: A downturn could impact donor contributions and reduce enrollment.
- Changing youth interests: The camp needs to stay ahead of evolving youth interests and preferences.
- Competition: The camp needs to continuously adapt and innovate to stay ahead of competitors.
Options Grid:
| Option | Strengths | Weaknesses | Risks |
|---|---|---|---|
| Refine Value Proposition | Focuses on core strengths | May not be enough to attract new customers | Competition may erode value |
| Expand Reach | Increases potential customer base | Requires significant investment | New programs may not be successful |
| Strengthen Financial Foundation | Ensures long-term sustainability | May require difficult choices | Economic downturn could impact fundraising |
8. Next Steps
- Develop a strategic plan: Outline specific goals, objectives, and action steps for implementing the recommendations.
- Establish a task force: Assemble a team to oversee the implementation of the strategic plan.
- Allocate resources: Secure funding and allocate resources to support the implementation of the recommendations.
- Monitor progress: Track progress toward achieving goals and make adjustments as needed.
Timeline:
- Year 1: Refine value proposition, develop new program offerings, and implement a comprehensive marketing strategy.
- Year 2: Explore partnerships, leverage technology, and implement a robust fundraising strategy.
- Year 3: Evaluate the impact of the implemented strategies and make further adjustments as needed.
By taking a proactive approach and implementing these recommendations, Camp North Star can secure its future and continue to provide a valuable experience for youth for generations to come.
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Case Description
Board members of a youth camp affiliated with the United Church of Canada were contemplating how to improve the competitive positioning of the camp. The organization recently received a relatively large donation and the Board Chair viewed it as an opportunity to revisit the organization's direction and positioning relative to other camps in the area. The organization faced competition from a number of faith based and non-faith based camps, most of which offered more diverse programming or were positioned with a stronger Christian message. The Board needed to determine how to improve the organization's competitive position without jeopardizing its Christian roots and core mission. It also had to decide how the donated money could support this, whether through a new building or other means.
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