Business Strategy

Porter's Five Forces

The Children’s Recreation Industry is certainly profitable if one considers the following five forces:

Competition in the Industry: the children's recreational industry does not necessarily have a high amount of competitors. There are very few companies within the United States who offer a similar space for children to play on inflatable bounce houses for a specific amount of time. Also, most children party places do not offer private events. Not only will the events private but each event will be assigned 2-3 party pros that will make sure that the event is executed to its best as far as customer service, setting up/cleaning up, entertainment and overall fun for all of the party guests.

Potential of New Entrants: To enter into this industry one would have to first acquire land, possibly an empty warehouse, install inflatables sensibly throughout the facility, then receive licensing and insurance for the potentially dangerous atmosphere. There are many more steps included however these are the fundamental and most costly steps. Each requires a significant amount of capital as well as a pre determined idea or vision of what the final outcome must consist of. 

Power of Suppliers: the amount of plastic and rubber inflatable producers to chose from is low. However once initially purchasing the inflatables, the cost of maintenance would become the main concern in which there are more suppliers to chose from. 

Power of Customers: the customers who seek our services, are responsible parents or guardians who want to provide foremost a safe environment and enjoyable experience for the children. Our opportunity to directly compete with limited competitors is high. As well as the opportunity to raise prices based on our differentiated/value-added services. Examples to raise prices include; convenience fees for multiple locations, a snack stand, as well as possibilities for private events. 

Threat of Substitutes: There are other options available that will provide entertainment for children but being that the customer seeks not only a place for children to play, but also a safe, clean and private environment, there are very few adequate substitutes. 

Competitive Strategy - Focused Differentiation 

There are tons of other birthday party locations, but not many offer the incomparable experience that Pump It Up offers. They offer a 100% private parties with the finest inflatables and party pros. The inflatables not only provide fun, but are in safe areas and clean. It’s these dynamics that have facilitated the amazing outcomes that keep customers happy and wanting more versus what other party locations have to bring to the table. Our company falls under the focus differentiation when it comes to what competitive strategy is being used. A differentiation focus strategy takes advantage of the special needs of consumers in targeted segments and looks for differentiation using the marketing for its product as unique. Pump It Up of Roselle Park offers an overall better experience than what their competitors can offer to parents wanting to have a memorable event for their children, friends and family. There are many other places that will offer birthday party celebrations and event planning services but Pump It Up takes pride on a few key services and have standards set high so it is difficult to match those standards when comparing services that can substitute what is already in place. The best way that Pump It Up responds to new competition is, besides doing things to keep loyal customers with them, adding new attractions and new activities that will keep the place new and exciting from returning customers.
Pump It Up takes pride on the cleanliness of their products and offers the clients a one-of-a-kind experience by giving their own room reserved for a party. They use a digital weekly schedule that has cleaning schedule as well a daily maintenance This gives us an advantage by keeping our product at its best value and preventing negative reviews from the parents of sick or injured children. Chuck-E-Cheese for example is renown for being a kids place that holds parties, offers food, and token packages, but they can only offer tables in the main room. Pump It Up will allow for customers to potentially rent the entire facility as long as the reserver plans far enough in advance. Some places have a section for all parties to fit together but Pump It Up offers a whole room of inflatable bouncers for that one particular party. They can have up to four parties at once and is held inside so for any chance of bad weather does not affect the party and the fun is never ending. 

In November of 2016, there was a new addition to Pump It Up that was added on called, Pump It Up Ninja, and it is geared towards older children as it is a little more challenging. Opening up Pump It Up Ninja helped tremendously because it allowed older customers to stay once their child thought they “outgrew” the regular attractions. Ninja is a competitive advantage because it brings other ages into the business. Not only is it going to target children but this obstacle will bring teens and adults to come and workout and try this Ninja obstacle out. Not really meant for kids under 10 probably without a guardian, but the business will grow with this obstacle room added. Most party places do not have this obstacle course so this will bring business from young adults that are willing to pay the price to get this workout of an obstacle in.

Business Processes 

Structured Process - Sales/Booking 

Dynamic Process: Social Media Posting & Analytics

Social media posting and analytics are constantly changing. With each party there is a end survey and with those surveys they get their results that let them know if the customer was satisfied with their event and if there is anything that can be done differently. Social media also allows to see all of the insights With social media we get to see statistics on who follows us, likes our page, any recommendations from the consumers that we should improve on and get to see what age group we are attracting. It allow different marketing strategies and targets. Every event that is marketed on social media is different in its own ways which is why social media falls as a dynamic process since more time and thought is taken into consideration when planning who will be the target audience.

Value Chain