DEVELOPING STRATEGIES OF SOCIAL ENTERPRISES

EXPLAINED USING PORTER'S FIVE FORCES ANALYSIS MODEL: TAKING MENTAL CHALLENGED CAR WASH 

AS AN EXAMPLE

Chengmeng Zhang 

College of Management of Shenzhen University, China;

This email address is being protected from spambots. You need JavaScript enabled to view it.

Meiqing Leng

Institute for Disability and Philanthropy, Shenzhen University, China

Lingang Zhou*

Professor, College of Management of Shenzhen University, China

Corresponding Author: This email address is being protected from spambots. You need JavaScript enabled to view it.

Abstract

As a non-profit commercial entity, social enterprises create value by focusing on challenging social problems, which solves the dual problems of service effectiveness and market demand. Social enterprises have both social and commercial attributes, and formulate development strategies that are in line with their own value orientation, and can better promote the solution of social problems. As a new model of supportive employment for the mentally handicapped people, the Mental Challenged Car Wash plays an active role in stimulating the potential of the mentally handicapped, employment and rehabilitation education, and can realize the normal operation of the enterprise by providing the income of the car washing service. By using the Porter's Five Force Analysis Model to analyze the Mental Challenged Car Wash, we can think that social enterprises need to combine their own value goals and advantages in the choice of business model and development strategy to accurately locate. When social enterprises use commercial means to obtain the funds necessary for development, they must also pay attention to the development and utilization of public charity resources, and reduce the operating costs of enterprises while investing resources more efficiently in solving social problems.

Key Words: Social Enterprise; Five Forces Analysis; Development Strategies; Social Entrepreneurship; Non-profit Organizations

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