Five Forces Analysis

Five Forces Analysis

Entry Barriers:

For smaller NGOs, providing a limited number of services with limited integration, entry barriers are rather low. Financial capital is minimal, and usually NGOs are tax exempted. The human capital required is also small with concentrated capabilities limited in their respective service sector.
 However, for operational efficiency, larger NGOs providing more horizontal, and vertical integration, across their value chain, are required. This makes the entry barriers for larger NGOs higher. My vision for Al Beit Al Iraqi, as an NGO, is to start small, to benefit from the low barriers, and grow organically to increase efficiency and reduce risks of competition. The NGO should be strategically positioned for growth.  
A third barrier can be considered in its location, in an old house, in a historical part of Baghdad. Only limited places can offer an impactful experience to visitors and partners. This will add further entry barriers, positioning Al Beit Al Iraqi in a unique position.

Power of Substitutes:

Substitutes fall into several categories here, the first is smaller, less diverse NGOs with limited capabilities specialized in one or two services such as training or empowering women. They tend to miss the opportunities created through synergies across vertical, or horizontal integration across multiple domains.
The second substitute is the small home business around 1 product line, woodwork or hand made kilims or textiles for example. They lack capabilities of proper training methodologies, archiving, marketing, quality control and business development. They also lack opportunities brought through coordination to integrate the different product lines.
The third is the public sector, with a couple of training institutes that suffer from chronic bureaucracy and a clear vision for growth.

Power of partners and end consumers:

Partners are small businesses that supply specialized product lines, depending on method production and raw material used. These small businesses also contribute services by providing specialized technical trainers. In those regards they can be seen as suppliers.
On the other hand, they will benefit from marketing, quality, small business management and trainer training sessions, as well as research facilities provided by Al Beit Al Iraqi to grow their own businesses and make them more competitive independently. They also use Al Beit Al Iraqi digital and physical marketplaces, and other marketing channels to sell their own products for a service fee paid to Al Beit Al Iraqi. From this perspective, they are considered consumers.
Regardless, partners are the most determinant factor for NGOs in this industry. They set the prices of the goods they produce. They also determine the price of services provided by the NGO. They could pose a risk by moving their supply line elsewhere. To control these risks, a constant supply of future partnerships will be required.
Another subset of consumers are the end consumers who are interested in the end products and services provided by the NGO. They are not contributing to the supply of products and services. These consumers are local (from the community) and international (the digital marketing, as well as through marketing partnership channels. They play a moderately determining factor for NGO competitiveness, as they play a role in setting the selling price of products depending on how they perceive the value of these products and services.
Another set of buyers are the NGO donors. This are external organizations and agencies, international or local. They can also be government agencies. They can also be private business or individuals paying for the NGO services, as part of their social commitment to change. In the non-governmental sector, donors can be considered as buyers, as they are paying for the service of the NGO. These are highly influential, depending on their brand loyalty, and number of donors available, they can exert extreme pressure on the NGO sector.

Power of Competitors:

The concept of NGOs in Iraq is rather new. Before 2003 there was hardly any local NGO operating in Iraq. Competitors for Al Beit Al Iraqi are organizations of similar scale. Currently, there is no NGO in Iraq focusing on the aspect of cultural heritage. Since entry barriers to the NGO market of that scale is high, it is hard to see any serious competition that can cause a threat in this sector.
As a closing remark, an NGO focusing on culture and heritage through crafts can be considered moderately lucrative in the short to medium future. However, to have a complete picture of the future investment in this sector, a complete PESTELE analysis and a SWOTT analysis (including emerging trends) is required.

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Business Model

Business Model

How the V-A-R-S model applies to Al Beit Al Iraqi

 Value Preposition

The economic value acquired through the project far extends the revenue expected through the sales of goods from craftsmen around Iraq. By creating synergies across multiple categories of products, new markets can be established, both locally and globally for the brand. In addition, by creating alliances with local and international partners will create value through exchange of knowledge, and experiences.  The generated value will be propagated to provide economic opportunities to small business and entrepreneurs. Training and social awareness campaigns, whether in areas of traditional craft making, or contemporary methods of marketing and management of small businesses, can be seen as an extra added value.

 Activities, resources, and capabilities

Activities include creating partnerships with different small business in the different areas of production. They also include cultural programs for awareness (lectures, concerts, talks, and training sessions), as well as entrepreneurial training on different value chains for small businesses. They also include marketing activities and campaigns. There are different synergies across these activities. For example cultural awareness programs can be also viewed through a marketing lens.

 Human capital is among the most important resources in this area. Another resource is market knowledge. This is an area where Al Beit Al Iraqi managed to build through years of past experience. The building owned by the founder of the organization is another resource.

 One of the strongest capabilities of the organization is building strong alliances with international organizations, as well as individuals interested in culture. This helps the organization build on others’ capabilities through partnerships and alliances to cover scope.

 Revenue streams

 These include three streams of revenue from direct sales of products: online, through the center, as well as through third parties and other brands. Services are charged per service (including training seminars), as well as through subscriptions (only subscribed members can attend certain activities or use the organization resources).

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in the media

Al Beit Al Iraqi In The Media

  • Waiting for war on the streets of Baghdad

    The Irish Times

  • A NATION AT WAR: THE REACTION; An Art Center Left in Ashes

    The New York times

  • Yale dialogue on Iraq gets heated

    New Haven Register

  • Iraq, its culture, heritage and how the war affected it

    Arab Voices Radio Talk Show

  • Amal Al Khedairy

    books.google

  • Iraqi women share their view of the war

    Chico News

  • أمل الخضيري

    موقع لايك

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Advisory Board

Name

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Name

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Name

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Name

p1

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