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Reflections on current challenges facing support, and the ‘battle for survival’ between small and large providers

Reflections on current challenges facing support, and the ‘battle for survival’ between small and... This article reflects on the competitive strengths and weaknesses of small and large support providers, based on observations over the last few years, predicted developments in the commissioning market and the application of a few business tools. It concludes that the support market is in a poor state, that few if any providers can make a decent return and that competition between providers has not brought forth ‘winners’ with a commanding share of the market and the ability to achieve significant efficiencies. In the commercial world, support would rank as a ‘dog’ business ‐ low market share, low growth, loss making. Commercial businesses, if unable to reduce costs, would have left or repositioned this activity by now. Large housing association providers seem t10.5042/hcs.2010.0705o be doing just this, a trend that is likely to accelerate. But loss of support contracts is an existential threat to the small providers, so, unlike their large competitors who can simply walk away, they are fighting harder and making more sacrifices to stay in business. Although no organisation can afford to make continuing losses, it is possible that the determination of small providers will see them through to better times. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Housing, Care and Support Emerald Publishing

Reflections on current challenges facing support, and the ‘battle for survival’ between small and large providers

Paul Kingsley
Housing, Care and Support , Volume 13 (3): 8 – Dec 1, 2010
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Publisher
Emerald Publishing
Copyright
Copyright © 2010 Emerald Group Publishing Limited. All rights reserved.
ISSN
1460-8790
DOI
10.5042/hcs.2010.0705
Publisher site
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Abstract

This article reflects on the competitive strengths and weaknesses of small and large support providers, based on observations over the last few years, predicted developments in the commissioning market and the application of a few business tools. It concludes that the support market is in a poor state, that few if any providers can make a decent return and that competition between providers has not brought forth ‘winners’ with a commanding share of the market and the ability to achieve significant efficiencies. In the commercial world, support would rank as a ‘dog’ business ‐ low market share, low growth, loss making. Commercial businesses, if unable to reduce costs, would have left or repositioned this activity by now. Large housing association providers seem t10.5042/hcs.2010.0705o be doing just this, a trend that is likely to accelerate. But loss of support contracts is an existential threat to the small providers, so, unlike their large competitors who can simply walk away, they are fighting harder and making more sacrifices to stay in business. Although no organisation can afford to make continuing losses, it is possible that the determination of small providers will see them through to better times.

Journal

Housing, Care and Support – Emerald Publishing

Published: Dec 1, 2010

Keywords: Support; Providers; Competition; Business

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