Market Environment Analysis: Case Study Of Open Family Australia

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Market Environment Analysis: Case Study of Open Family Australia1
Table of ContentsIndustry Overview and Service Description....................................................................................3Micro and Macro Environment of Open Family Australia.............................................................4Market Segmentation strategy used by Open Family Australia......................................................5Market Targeting and Consumer profile.........................................................................................8Differentiation and positioning strategies........................................................................................8Conclusion:....................................................................................................................................10Reference List................................................................................................................................112
Industry Overview and Service DescriptionOutreaching for homeless is preferably the kind of industry that can be linked with safeguardingand sheltering homeless individuals. Being widely spread across the globe, it provides the carethat homeless people require. According to Hwang and Burns (2014), the market for Outreachservice providers and youth care homes is still at the nascent stage and provides tremendousscope for growth both domestically and globally. As per research by Mission Australia theoverall costs to the community was at an average of AU$ 17,868 per homeless young person.This level of costs to the country is an immense problem that needs addressing. It was alsoestimated that the cost of preventing the youth from being homeless could save the governmentaround AU$ 626 million per year. The reports also shed light on the fact that around 56% ofyouth left home due to violence at home. Around 80% of young people in New South Waleslooked for help form homelessness service providers (NewsComAu, 2016). These factors hintout at the growing need for outreach services and help homes for the homeless youth.Keeping the growing need for such services, it can be assessed that the major competition forOpen Family Australia in this sector includes Mission Australia, Salvation Army, JunctionAustralia and Concern Australia. All these companies are directly competing in the same targetmarket, and their target audience is similar as well. Keeping in mind, the rapid growth inhomelessness of Australian public, margin grew from 89,728 in 2008 to 106,237 in 2011(Abs.gov.au, 2016). The government has kept the need for increasing housing facilities its maincriterion and has allotted a budget of AU$ 560 million for the development of housing andaccommodation (Dcp.wa.gov.au, 2016).In that perspective, Open family Australia is one of the best outreach service providers inAustralia that mostly operates in Victoria and New South Wales. It was informally founded on1978 in Melbourne and registered as a public company on September 6th, 2007. It undertook amerger with a youth organisation named Whitelion in 2011. Their major services includeWellbeing of young people, Alcohol and other drugs (AOD) prevention programs, Youthmentoring programs, Mobile youth outreach services and Assertive outreach support modules(Openfamily.com.au, 2016). These intimate services include active participation of youth andallows understanding of their issues. These services are developed with the utmost responsibilityof safeguarding the homeless youth of Australia and providing care and nurturing.3
Micro and Macro Environment of Open Family AustraliaAccording to Tsaiet al. (2014), the necessity of understanding and evaluating the micro andmacro environment of allows businesses to make stringent and dedicated plans that look towardsmaking the company profitable. The assessment of the micro factors that influence businessoperations of Open Family Australia can bring out the perspective of the reasons behind thegrowth of homeless youth and the level of difficulties in managing the youth population.MICRO factors:Keuroghlianet al. (2014) opined that micro factors cleverly bring out theinternal issues and struggles that hinder the development and growth of companies. The majormicro factors involve the company in general, customers, suppliers, competitors and the generalpublic. In the context of the issues faced by Open Family Australia, the variables of thecompany, customers and competitorscan be discussed. The first factor that can be discussed isthe company and its undertakings. Being a socially relevant company, it increases the burden ofmoral and ethical issues to be borne by the company. Since the company deals in handling youngpeople and their problems, it increases their ethical dilemma of using means that may beinappropriate. It raises the quotient of mistreatment that can be labelled against the company.The second issue that hinders the operations of Open Family Australia is the Customers or thegeneral youth population. Relying mostly on the service of the homeless youth population, itposes an issue due to the diverse nature of the young people and the alarming rise inhomelessness. According to Fazelet al. (2014), dealing with adolescents and a particular agegroup can pose problems due to the multiple personalities and the different issues that they bringto the table. Open Family Australia has a diverse range of services that can cater to its clients, butthe management of the youth population may get tiresome and requires skilled and patientworkers.Moreover, competitors pose a serious threat to business since they claim a definitive share of thetarget population as well. The major competitors Mission Australia, Junction Australia andConcern Australia all deal in servicing people of similar age bracket and similar issues ofhomelessness. This creates a congested market for business operations and makes it difficult toreach out to a vast majority. Sharing a market with competitors does impact the functioning ofbusiness on a wider scale, and that is supposedly the issue that Open Family Australia is facing.Huge demands but huge competition as well.4
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