Relevance of Ansoff‟s Product/Market Growth Strategies in Community Based Organizations in Kisumu County, Kenya

The purpose of this study was to establish the extent to which CBOs in Kisumu County apply Ansoff's Product Market Growth Strategy. In this context the study examined the four Ansoff's 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 County 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. © 2018 Elixir All rights reserved. Elixir Strategic Mgmt. 115 (2018) 49811-49821 Strategic Management Available online at www.elixirpublishers. com (Elixir International Journal) Benson Mbithi / Elixir Strategic Mgmt. 115 (2018) 49811-49821 49812 The choice of strategy is determined by the level at which decisions are made, size and nature of the organization. Multi business organization‟s choice of strategy is different from single business organization choice. Corporate level decisions are about the entire organizational direction while business decisions focus on organizational business competitiveness. Corporate level strategies include BCG growth model whose main approach is analysis of organizations‟ business units or product lines in terms of relative market share and market growth rate (Pearce and Robinson, (1997). GE/Mckinsey model, is an improvement of BCG matrix model through the use of nine cells to address business unit strength and industry attractiveness. Business level strategies include Porter‟s generic strategies which focus on how a firm can establish competitive advantage. The model further shows how an organization competes in a specific business or industry through low cost, differentiation and focus (Porter, 1980, 1985, 2001). Ansoff product/market growth model, a business level strategy seeks to discover growth opportunities and modifying the core offering (Ansoff, 1965, 1987). It is therefore clear that single business organization will opt for a business level strategy either Porter‟s generic strategies (Porter, 2001) or Ansoff‟s product market growths strategy (Ansoff, 1965, 1987). Porter‟s generic strategies (Porter, 2001) emphasis is on competitive advantage while Ansoff product market growth model establishes growth options making it an ideal strategic choice for a single business organization. Community based organizations are non-profits within a single local community (Odindo, 2009). CBOs in Kenya are constituted under Social Service Department, Ministry of Gender, Children and Social development. Wide ranging issues have been associated with CBOs geared to develop communities they are located. Kisumu is a County that forms a host for CBOs according to Kisumu Annual District Report (2010). Kisumu County CBOs therefore forms a potential