Responding and adapting to changing needs : a study of AAI's ability to remain competitive and relevant in the community

Abstract

The study examines the importance of competitive advantage and change in a dynamic environment. The purpose of the study is to explore how AAI could remain relevant and competitive in the market and examines how regularly changing its approaches to programme delivery could be used to meet needs of the community. The study also focused on the impact of AAI’s pace of change and how the pace impacted on the organization’s effectiveness and quality of programmed delivery. AAI relied on its past successful programmes to address the need of communities in many new countries. However, previously successful programmes did not prove popular when rolled in new markets. AAI programmes are suffering substantial withdrawals from beneficiaries. Beneficiaries are withdrawing from AAI programmes, complaining that the programme delivery approaches were not competitive and innovative. Many new organizations being formed are competing not just for beneficiary markets, but for financial resources (funding), skills and new ideas of delivering programmes. Traditional government type donors are being overtaken by a new crop of donors that is in favour of funding competitive and innovative organizations. Traditional aid organizations are losing market share to smaller agencies. The organizational structure of AAI appears not to support effective and efficient delivery of programmes. With no senior manager at the helm of the department, coordinating activities, sustaining competitive advantage and managing change within the programme department remained a challenge for the organization. A frastruated staff compliments exacerbated the situation. Employee turnover at the key and tactical levels resulted in the department operating without adequate staff and key personnel. This made coordination and cooperation amongst units very difficult. Various programme units operated in silos and mixed messages were sent to community resulting in the community being unhappy with AAI. Community felt that AAI did not consult with them when deciding on how to meet their needs. Community members felt that AAI was taking unilateral decisions and did not care about their feedback and the quality of the programmes delivered. This study further examines how AAI has suffered due to its inability to respond to the needs of community and its failure to adapt to the changing business environment. It reveals how innovation and adaptability is critical for retaining competitive advantage. It reveals how capabilities once built can be eroded by competition through copying. It concludes by revealing the importance of dynamic capabilities in sustaining competitive advantage as well as the need to change in response to the market.