the organization of my choice, I opt to refer the National Social Security
Funds (NSSF) as the cased study.
National Social Security Fund (NSSF) was established by the Act of Parliament
No. 28 of 1997 to replace the defunct National Provident Fund (NPF). NSSF is a
compulsory scheme providing a wider range of benefits which are based on
internationally accepted standards.
wider ranged products offered by the National Social Security Funds are as
business organization has its competitors who shares the same market while
practicing business activities, and also are serving Customers with either
Products or Service of the same type, for this case NSSF competitors are other
Pensions Funds Organizations which are;
– Local Authority Pension Funds.
– Public Service Pension Funds.
– Parastatal Pension Funds.
drives innovation and quality. Open
competition puts pressure on providers to constantly research, innovate
and upgrade the quality of
their products and services, according to Advanced Micro Devices. If businesses
fail to identify emerging trends and changing preferences in the marketplace,
competitors can capture market share. Perpetual focus on quality improvement
benefits customers and drives industries forward.
leads to collective learning. While
doing business there is no need to self-count for perfection. For so in some
cases, the best way to learn is
to watch how other successful businesses perform. In fact, this is to say that for a business
organization to learn from other successful organizations it must look upon
both the strengths and the weaknesses, so as to upgrade the strengths and gain
new ways of how to overcome the weaknesses.
Improves knowledge and customer emphasis: In any business organization, better Customer
service and loyal relationships are the main and major elements for a
competitive strategy. Hence the fight for potential customers working over the same market, causes companies
to devote more time and effort in research and in relationship management
processes that strengthen loyal relationships between the business organization
and its customers.
Motivation. For any business
organization it is very difficult to stay out from competition, the only great
way the organization will be required is to be highly motivated and try to
stand as a better business performer in the industry. Competitors will help to
keep the organization proactive, alert, creative and self-focused. Also it
stops the organization being self-satisfied and hence think of best ideas to
satisfy its customers. It also stimulates the organization to become a real
hard working since its personnel become smart and self-motivated. This helps
the organization to reinforce its strengths and overcome its weaknesses, hence
leads the organization being best competitor into the market.
Your Strengths and Weaknesses.
Sometimes the organization may relax, and may not always know how much
strengths and weaknesses it has. But competitors may show it out. The goodness
of Competition in the market is that it helps the organization to focus more
and concentrate on what they are best at, that its competitors aren’t.
You to Focus on Your Key Customers.
Competitors reminds the business organization every moment to devote its
attention on its potential customers. Further it’s because those potential
customers are the real source of more income to the organization. And by
devoting attention on them the organization also gains the new ides to serve
them better, hence satisfying them.
(Thomas Circle. 9th April, 2014).
Market segmentation is the process of dividing a market of potential customers
into groups, or segments, based on different characteristics. The segments
created are composed of consumers who will respond similarly to marketing
strategies and who share traits such as similar interests, needs, or locations.
In order to attract and satisfy potential
customers to the organization, the NSSF have segmented their market in four segments
which are, Demographic, psychographic, geographical and sociocultural market
In Demographic segmentation the
organization has placed in within two products that can be enjoyed and satisfy
the user needs, here there is Old Age benefits as well as Maternity benefits.
Age benefits, this product is specifically set to
server for retirement pensions that is to insure and guarantee income security
to elderly customers of the organization by providing periodic payments, and
this is after they have retired.
The payments are made to the customers who
have compulsorily retired at the age of 60 and early retirement over the age of
55 to 59 only.
Maternity benefits, Maternity
benefits are payable to insured female members of the Fund who is expecting
confinement. This benefits also covers medical treatment costs for ailments
directly related to pregnancy. Treatment period begins from the 24th week of
pregnancy and ends 48 hours after confinement or seven (7) days in case of a
caesarean delivery and treatments are
by accredited medical providers.
For the Psychographic segmentation the organization has set three products
aimed only for serving small scale schemes, that is Mining, Farming and
Mining, Fishing and Farming Schemes. The main aim of this product is to
insure protection against any uncertainty to the small scale mining, fishing
and farming personnel. This means that the NSSF offers them free of charge
treatments to both Sectors’ personnel and their family.
Furthermore, the organization has this product to join forces with the
government to create the generation that is non-dependent, by offering all
pensions provided by the organization that are Old age, invalidity and fighting
poverty as a whole. Also, this package facilitates small scale mining, Fishing
and Farming personnel to obtain loans with affordable and small interests that
can help them in obtaining advanced and technological tools for their works,
paying fees for their children and performing other development activities.
In this market segment, the NSSF has only one product that is targeted to
serve only all Tanzanians who are living in foreign countries. This product is
special Diaspora coverage scheme called (Welfare Scheme for Tanzanians in the
Diaspora – WESTADI).
The WESTADI. Aimed to cover all Tanzanians living abroad (Including
Students) and 4 dependents selected by the insured person for Social Health
Insurance Benefits (SHIB) in Tanzania. Apart from serving students and health
insurance benefits, the WESTADI also repatriation and Burial
services that the organization may carry all the costs for transferring the
deceased body from abroad to Tanzania as well and further it will cover the burial expenses of the deceased
insured person who opted to be buried in the respective Diaspora country.
For this segment
the organization has the products that serves for families, and social classes.
Here it has been offering three products that is funeral grants, invalidity
benefits and SACCOS scheme.
Funeral grants. Funeral Grant is paid as reimbursement to a family
member who incurred burial expenses (costs) for a deceased NSSF insured person. For the purpose of Funeral Grant, burial expenses include, Coffin
for the burial or used to transport the body, Grave preparation expenses, Wood/timber,
Fire wood or oil (for cremation), Transport costs to the cemetery within the
locality and Body Preservation costs. Reimbursement of
funeral cost is made on the basis of actual costs incurred but does not exceed
the ceiling set by the Board of Trustee from time to time.
Invalidity Pension is paid to an insured person who has lost at least 2/3 of
his/her earning capacity due to physical or mental inability as certified by
the medical board. The determination of the amount payable is the same as for
Old Age Pension but the additional percentage above 180 credits is 1.0%. The
benefits payable are also the same as Old Age that is monthly pension, initial
lump sum and Invalidity special lump sum for non-qualifying members.
SACCOS Scheme. This service is set to serve
for facilitating all development programs organized by SACCOS groups through
offering affordable loans to those SACCOS groups, not only that but to provide
sponsorship for education.
any SACCOS the minimum amount of loan given is 50million and the maximum amount
is 1billion. However that amount should not exceed 50 percent of the sum of all
Assets owned by the SACCOS, and the minimum limit of loan is set by the certain
SACCOS group. This package offers the affordable costs of loan regarding the
basis of interests as those used by the government that is for two years loan
it will pay the interest of 9.32% per year and for the five year loan it will
pay 10.68% interest per year.
orientation adopted by the National Social Security Fund is Market concept and Societal
Market concept, the organization has been
trying to its best level to provide products that meets the exactly desire of
its customers and hence provide great satisfaction at an effective and
efficient way comparing to its competitors. The organization is capable of
doing all that things only by identifying what are the needs and wants of its
customers. Also the other aim in this orientation is that, the organization has
devoted its all effort to value and satisfy its customers because they are the
one who contribute for the organizations great achievements.
the organization has been conducting research programs that are aiming on
identifying its competitive advantages, and this is made through analysing
other competitor’s weaknesses and strengths.
organization has been seen to improve and maintains customers and society’s
wellbeing, since it provides the desired satisfaction to the targeted market
after they have knew what are the interests, preferences and needs of its
the so done by the organization (NSSF) has been efficient and effective than
what the other competitors are doing.