Process Strategy is the pattern of decisions made in managing processes so that they will achieve their competitive priorities. There are four dimensions involved in the process strategy, Process Structure, Customer Involvement, Resource Flexibility and Capital Intensity. In order to effectively achieve the competitive priorities, it is vital that each component of the process strategy works well together.
Process Structure
Pump it up is considered as a service process structure. There are three processes which managers can select from such as front office, hybrid office, and back office. Pump it up uses the process of front office where there is a high customer interaction and flexible service. Customers are willing to pay higher prices in order to customize the service or the activities they want. Pump It Up allows their customers to customize their events as far as party themes, party foods and party experiences which leads to a high customer involvement.
Customer Involvement
Pump it up customers are able to customize their whole party, they can choose what they want and what they do not want. It is much easier to Pump it up if the customer knows already what they want because It will be less work for the team members. Major customer involvement also requires interpersonal skills, and people today lack that quality. Furthermore, lack of communication could be a major issue for customers which can lead to a bad customer satisfaction.
Resource Flexibility
Pump It Up’s resources are very flexible. Their resources are primarily made up of inflatables that kids play on. Also, Pump It Up has the Ninja-room with obstacles much like Ninja Warrior obstacle course. All equipment can be handled by multiple employees and multiple customers.
Capital Intensity
Capital intensity is the mix of equipment and human skills in a process. The greater the cost of equipment relative to the cost of labor the greater is the capital intensity. Pump It Up is considered to have medium capital intensity. Although Pump it Up would not be able to operate without their inflatables, there is more to the event than that, there is a food area, and different rooms to do other activities, there is also Pump it Up Ninja that does not entirely require inflatables so they do not just rely on the that.
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