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The primary strength of the American Red Cross may be its sterling reputation. The American Red Cross has provided quality disaster and emergency response to thousands of people, both in America and abroad, so that people know it will do what it promises to do. Because it has upheld the promises of its reputation, the American Red Cross has loyal customers and loyal donors. The result is that the American Red Cross can be considered a market share leader among non-profits and disaster-response organizations. The American Red Cross already has huge financial resources, which give it the ability to leverage assets, and also to quickly mobilize in case of disaster. For example, the American Red Cross was able to organize national blood donations in response to the 9-11 disaster. Finally, because the Red Cross focuses on several different aspects of emergency response, it maintains a presence in the community even when there are no ongoing disasters. The American Red Cross's emerging online presence is an additional strength. Potential donors can see what type of services their time or money can help provide, while potential users can determine if the Red Cross is the right organization to help fulfill their needs.
One of the problems with nonprofit organizations is that it can be difficult to project income, since income is dependent upon donations. That can make it almost impossible for non-profits to engage in long-term planning. It also means that funds are going to be limited; unlike a money-making corporation, it is almost impossible for the Red Cross to do anything on its own to increase donations. Like all non-profits, the organization is particularly vulnerable to financial fluctuations. The organization also has several features which would be weaknesses in a corporate setting. First, it may have problems with protecting its brand; the organization is run through local chapters, so that a corrupt person in a single chapter could damage the reputation in an entire area. The organization also lacks innovation; even its efforts at education and prevention are merely extensions of its original vision.
"American Red Cross" (2011, August 07) Retrieved April 18, 2014, from http://www.paperdue.com/essay/American-Red-Cross-43824
"American Red Cross" 07 August 2011. Web.18 April. 2014. <http://www.paperdue.com/essay/American-Red-Cross-43824>
"American Red Cross", 07 August 2011, Accessed.18 April. 2014, http://www.paperdue.com/essay/American-Red-Cross-43824