Running head: MAKE-A-WISH ENVIRONMENTAL 1

Make-A-Wish Environmental Analysis

The Seekers

OGL355: Leading Organizational Innovation and Change

Dr. B

October 31, 2019

Arizona State University

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Make-A-Wish Environmental Analysis

Make-A-Wish foundation is a non-profit organization that makes a dream wish

for a child that is battling a critical illness come true. Non-profit organizations like this

one are able to offer amazing services but rely solely on donations to keep the business

running. Like any other business, a non-profit needs strategies in order to keep their

services available to their clients. This analysis will be using Porter’s Five Forces as the

structure to determine threat levels within the industry. The main topics the analysis will

cover threat of new entrants, bargaining power of suppliers and buyers, threat of

substitute products, and industry rivalry. Target market and strategies will also be

identified within the scope of this paper.

Industry Analysis

Michael Porter (2008) developed a way to analyze an industry by pioneering the

Porter’s Five Forces model. By utilizing this model, one can determine if the risk is high

or low in all five forces. The first force is the threat of new entrants coming into the

industry after the business has been established. If there is a business that is easy to start

up or in very high demand the threat of new entrants would be high. The second force is

the bargaining power of buyers meaning if there are many other businesses in the

industry this could control your prices to keep up with the competition. The third force is

bargaining power of suppliers. If there is a high demand item more than likely the supply

will be easier to get a good price. The fourth force is the threat of substitute products

which is another way for your customers to receive their products or services. The last

force of Porter’s Five Forces is analyzing the industry rivalry to determine if your
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business will be sustainable. The following report will analyze in detail Make-A-Wish

using this same model.

Threat of New Entrants

The Make-A-Wish Foundation is unique in that it is a non-profit organization that

grants wishes to children battling critical diseases. One of Porter's Five Forces is the

threat of new entrants; the threat of new competitors (Wilkinson, 2013). When one

considers threats of new entrants, Make-A-Wish is on solid ground in that there is not

another company that provides this exact service. There are a few that do grant wishes to

children and adults with chronic illness, though that is not exactly the same. The threat of

new entrants is very low.

Bargaining Power of Buyers

Another one of Porter's five forces is power of buyers. Power buyers is the direct

effect that the consumer has on a company that can force the company to lower prices or

create better customer service (Wilkinson, 2013). In this case the buyer would be the

people and corporations that donate. This one does not directly affect Make-A-Wish,

though it could at some point. If another organization started granting specialized wishes

for children that were critically ill, Make-A-Wish could be forced to step up their game.

As of now, the company is known globally and has a broad reach. The people that

choose to donate are doing so to help the children realize their biggest wish. At this time

the threat of power buyers is low for Make-A-Wish.

Bargaining Power of Suppliers

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The bargaining power of suppliers increases depending on the dependency an

organization places upon it. Michael Porter (2008) states that suppliers wield more power

if they have a monopoly on, or there are no substitutes for, the product or service an

industry requires, or if the supplier can satisfy multiple industries in order to earn their

revenue. Porter also mentions that if there are fees associated with switching suppliers, or

if a supplier can make a credible threat as a new entrant, the supplier’s power increases

(2008). When evaluating the power of suppliers with regards to the nonprofit, Make-A-

Wish, power is a little more ambiguous, although ultimately, it is believed to be low.

Depending on how specific the child’s wish, the procurement of supplies

necessary can vary widely. As of 2016, it was estimated that a wish costs roughly

$10,130 (“Frequently asked questions,” n.d.). If the wish can be granted with the use of

volunteer staff and is locally based, then the need of large suppliers other than airfare for

extended family members (if necessary) and local businesses, may not be necessary.

Therefore, the power of suppliers is low because what is needed can be fulfilled by a

variety of suppliers. On the other hand, if the wish is to visit a certain destination, meet a

celebrity, or own a specialty item, then the power of suppliers increases; but this too may

be controlled.

Make-A-Wish Foundation boasts over 240 celebrity supporters and Disney, which

is a Mission Champion donating $5 million annually and accounts for nearly 50% of all

wishes made, may offset the expense of such requests due to supporter generosity and the

incentive of free positive publicity (“Make-A-Wish Foundation,” n.d.; “Current

sponsors,” n.d.). Since Make-A-Wish is a 501(c)(3) tax-exempt organization, donations

are tax deductible; in-kind donations are accepted as well offering yet another incentive
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for corporations and celebrities to donate product and services (“Frequently asked

questions,” n.d.). Therefore, the overall threat evaluation of the bargaining power of

suppliers is deemed to be low.

Threat of Substitute Products

“Substitutes are always present, but they are easy to overlook because they may

appear to be very different from the industry’s product” (Porter, 2008). Oftentimes,

people only look towards their rivals as a threat of substitute. However, in reality there

are many options that pose a threat to one's organization. For example, if a person decides

to do without or do it one self is considered to be a substitute.

In order to determine the threat of substitute products for Make-A-Wish, we need

to look at two scenarios. The first scenario would be the threat of a participant signing up

for a similar wish making organization such as Dream Factory or Sunshine Foundation.

Both these organizations provide similar wish granting opportunities for children that are

chronically ill much like Make-A-Wish. These would be examples of threat of substitutes

because the less amount of people who apply for Make-A-Wish would eventually

decrease the funding the organization receives from both donors as well as grantmakers.

The second scenario to consider in determining the threat of substitute would be

how likely a potential recipient is to create their own crowdfunding page. In the virtual

world we live in today, there are many resources available for people to fundraise

themselves while reaching a broad audience. The idea of crowdfunding such as

GoFundMe and YouCaring have given individuals the ability to raise funds from people

all over the world. This would be a threat of substitute due to the fact that the middle

man, Make-A-Wish, would no longer be needed.

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With these two scenarios considered, the threat of substitute is still relatively low.

Although there are similar organizations out there, Make-A-Wish is a leader in the field

of providing a wish granting service to critically ill children leaving the risk of losing

supporters low. Also, even with the virtual day and age we live in and all the

crowdfunding that is available to the public, the majority of the money that would be

crowdfunded by family and friends would go directly to the treatment of the kid that is

ill. There will always be a substitute available but the threat of such substitutes towards

Make-A-Wish is currently low.

Industry Rivalry

When looking at the industry rivalry for Make-A-Wish you not only have to

consider similar organizations but also all nonprofits that are “fighting” for grants and

donors. Although Make-A-Wish is an industry leader in their specific field of granting

wishes for critically ill children, there are many organizations and individuals that offer

services that are similar but not as specific. For example, St. Jude could be considered an

industry rival as they also assist with children who are ill, just in a different way. With

this in mind, it is important for Make-A-Wish to stand out in their mission, values, and

vision. This is what allows them to stand out as an organization and receive the backing

they need in order to operate.

All things considered, the threat of industry rivals would be high. Although there

are many grants and donors available, the competition is also high with a plethora of

available nonprofits to give to. Not to mention the available resources outside of the

nonprofit sector such as individual campaigns and for profit organizations. In order to

stay relevant and maintain their status as an industry leader, Make-A-Wish needs to
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continue to grow and develop their marketing strategies as well as their target audience to

reach more people and thrive in the oversaturation of nonprofits.

Target Market

The majority of nonprofits depend on the generosity of corporations, private

donors, fundraising events, foundation grants, etc. In order to procure enough revenue,

Make-A-Wish must identify specific target markets. While targeting a specific market

does not mean at the exclusion of any other possible demographic, it simply allows an

industry to focus their attention and resources on those most likely to contribute to their

cause in a more affordable, efficient, and effective manner (Porta, n.d.). There are two

main types of resources the Make-A-Wish Foundation covets: financial donations and

volunteers. Although not mutually exclusive, the target market for each is slightly

different.

The Make-A-Wish Foundation’s national office revenue comes from 43%

corporate alliances, 42% individual contributions, and 15% other (“Managing our funds,”

n.d.). In order to target more individual contributions, the target market will need to focus

on those who are financially secure and career established, most likely within the age

range of 30-54 years of age. According to Cynthia Meyer (2019), a contributor of

Forbes.com, those within the 30-44 age range are balanced in their real-life commitments

and those within the 45-54 age range have maximized their savings; any later than that

and concerns for retirement supersede other concerns. Although both genders are deemed

equally applicable as target markets, those that have family members or close friends

with children that are ill are more likely to donate. If advertisement of the local state

chapters are visible, then the target market will also center near those locations as well.
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Urban and suburban neighborhoods will also boast more individuals that can support

monthly donations and are likely to be family centric.

For volunteer target market, earlier and older age ranges are the most likely due to

the lack of career commitment and need for social engagement. Ages from 17-24 are high

school and college students who could benefit from volunteer experience that would look

good on a school application or resume. Individuals in this age range are influenced

heavily by social media and believe they can make a significant impact on their world

(See3 Team, n.d.). Both genders are applicable and again, those near a more visible

foundation chapter will be interested. Those that are single are more likely to search for

social interaction and a worthy cause for their time, which Make-A-Wish provides for

both. Individuals in this age group are drawn to unique and influential experiences.

Those in the age range of 57-70 will have either retired, are empty-nesters, or may

even be widowers whom still see family as a priority (See3 Team, n.d.). These

individuals will be searching for distractions to fill their time, ones that are heavily

focused on family values. Those retiring early are most likely college graduates, live in

suburban neighborhoods, and are open and friendly in personality (See3 Team, n.d.).

Although they are not as technologically savvy as those of younger generations, the usage

of online periodicals or e-mail server top stories may attract their attention. Depending on

which resources the foundation desires to attract most, financial or volunteer, the target

market will focus on one or the other.

Competitive Advantage Strategies to Maintain Target Market

Maintaining the specified target market is essential to Make-A-Wish Foundation

because the non-profit is run purely off these heartfelt donations. As a team, The Seekers
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have identified some competitive advantages that will help keep Make-A-Wish

Foundation’s income of donations at a consistent level. Since Make-A-Wish primarily

receives donations from corporations and individuals, it is extremely important to keep

those relationships secure. Make-A-Wish cannot afford to lose any connections with

potential donors which could ultimately result in the losses of wishes for desperately ill

children.

First and foremost, Make-A-Wish should capitalize on advertisement

opportunities. This means analyzing donor trends and determining whether they would

prefer digital or hard copies of advertisements, reminders of benefits, etc. Today's trends

show the younger generation prefers emails over paper copies. Mailing a 30 year old a

reminder to donate would be a waste of money as it is more likely they would just throw

it away. Therefore, advertisements and reminders will be sent via email to this particular

group. On the other hand, the older generation may want that hard copy in the mail as a

keepsake of their generosity and the true difference they are making in another’s life.

This group will receive hard copies of all information.

Advertisements will also appear on the television, radio, and in public settings. It

is imperative that the target audience is reminded of Make-A-Wish’s continuing

existence and the good its services provide. TV advertisements will capture the attention

of hard-working adults who sit down to watch their favorite television show after a long

day. It might be at this time that they realize how grateful they really are and it reminds

them to donate again. Radio testimonials will target all the adults, families and parents

that listen to the radio station on their morning commute. These radio podcasts will be

stories from the children themselves talking about the trip they were granted by Make-A-
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Wish. Too large an emphasis on sad stories can be emotionally draining, therefore

emphasizing the positive aspects of the experience itself will hopefully waylay avoidance

of the subject and instead cause these target individuals to embrace the desire to help. The

objective is not to have people crying on their way to work, but to realize how their

donations are actively changing children's lives.

Another aspect The Seekers would like to address is directly directly partnering

with public corporations in the process of donating. This does not necessarily mean that

the corporation is solely donating the money themselves. Many companies allow

employees to have a percentage of their paycheck taken out and donated to the charity of

their choice. The goal is to encourage more companies to do this, as well as match their

employees donations up to a certain amount. This also puts a bright light on the company

because they are doing a selfless act. Another idea would be for department stores to

partner with Make-A-Wish, ultimately resulting in increased sales in the store and

donations for the non-profit. Make-A-Wish will send out coupons to donors from

participating department stores such as Macys, Kohls and Saks. Also, when the customer

makes a purchase, a percentage of the sale automatically goes to the Make-A-Wish

Foundation. This promotes sales in the store and donations, so it benefits both sides.

The final proposed strategy is to make Make-A-Wish state chapters more visible

to their local communities. The reasoning behind this is to encourage more donor and

potential volunteer interest if people are made aware of the lives they are changing right

in their own backyards. Doing so builds a stronger connection and commitment between

the individual and the cause. Chapters can take advantage of high schools or colleges

around them to solicit for support through fliers, school appearances, or advertise on
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social media. Emphasizing life and work experience garnered through participation will

appeal to those individuals seeking to add community service to applications and

resumes. More involved chapters will also draw the attention of older adults searching for

a worthwhile commitment in their retirement years. With a stronger community

connection, the children in need of granted wishes become almost like surrogate family.

While these older adults may not utilize social media tools as much as a younger

generation, advertising at local coffee shops, diners, or local newspapers (both hard copy

and digitally) may succeed in drawing their attention.

Conclusion

Throughout this analysis it has been concluded that Make-A-Wish has many low

risks as a non-profit organization. With the unique way Make-A-Wish operates and what

their target audience is the threat of new entrants and bargaining of buyers and suppliers

are all low. The threat of substitute services even with new ad hoc donation apps such as

GoFundMe is relatively low for Make-A-Wish. The main risk for industry rivalry would

be other non-profits that appeal to people’s values or tug at their heartstrings to donate to

their organization over Make-A-Wish.

There are many strategies that Make-A-Wish can do to help keep their name

known to reach more donors and keep their mission alive. One of these strategies is by

T.V. commercial appearances and radio testimonials. Using storytelling communication

techniques are always an effective way to get through to a target audience. Chapter

visibility is also a viable strategy to increasing the Foundation’s volunteer base. Make-A-

Wish has been doing a great job at expanding their organization globally and from the
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analysis, has a strong chance of being around, making amazing wishes come true for

children critically ill, for a very long time to come.

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References

Current sponsors. (n.d.). Retrieved from https://wish.org/ways-to-help/

sponsorships/current-sponsors

Frequently asked questions. (n.d.). Retrieved from https://wish.org/content/faq#

Does-the-family-have-to-pay-for-the-wish

Make-A-Wish Foundation celebrity supporter & events. (n.d.). Retrieved from

https://www.looktothestars.org/charity/make-a-wish-foundation

Managing our funds. (n.d.). Retrieved from https://wish.org/about-us/making-a-

difference/managing-funds

Meyer, C. (2019, April 15). What does financial wellness look like at different ages and

career stages? Retrieved from https://www.forbes.com/sites/financialfinesse/

2019/04/15/what-does-financial-wellness-look-like-at-different-ages-and-

career-stages/#1587afb66a7f

Porta, M. (n.d.). How to define your target market. Retrieved from https://www.inc.com/

guides/2010/06/defining-your-target-market.html

Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard Business

Review, 86(1), 78-93. Retrieved from https://asu.instructure.com/courses/36544/

files/8375962/download?wrap=1

See3 Team. (n.d.). How Make-A-Wish is telling new stories with audience personas.

Retrieved from https://see3.com/how-make-a-wish-is-telling-new-stories-with-

audience-personas/

Wilkinson, J. (2013, July 24). The Strategic CFO. Retrieved October 25, 2019,

from Threat of New Entrants (one of Porter’s Five Forces):

https://strategiccfo.com/threat-of-new-entrants-one-of-porters-five-forces/
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Wilkinson, J. (2013, July 24). The Strategic CFO. Retrieved October 25, 2019,

from Buyer Bargaining Power (one of Porter’s Five Forces):

https://strategiccfo.com/buyer-bargaining-power-one-of-porters-five-forces/