Forces driving competition in human service organizations and positional competitive responses

The author develops a framework for five forces driving competition among human service organizations (HSOs): (1) rivalry among existing organizations; (2) the presence of substitute services in the market; (3) the bargaining power of suppliers; (4) the bargaining power of consumers; (5) the threat of entrance by new organizations. The study is an analysis of the factors that ultimately determine the extent of competition experienced by each human service organization and that affect its ability to operate. In addition, three competitive positional advantages-delivered cost position, differentiated offering, and protected niche-are examined, and found to have potential to deal effectively with competition in the field. The benefits and limitations of each position are discussed.