Strategic Positioning through Process Structure

• Preparing the service blueprint is the first step in developing a service

process structure.
• Decisions still remain on the degree of complexity and divergence desired in
the service.
• The steps and sequences in the process captured by the service blueprint and
measured by the number and intricacy of the steps represent the degree of
complexity of the service delivery structure.
• Eg :- Take out order is less complex than a gourmet dinner.
• The amount of discretion or freedom that the server has to customize the
service is the degree of divergence that is allowed at each service process
step.
• Eg :- the activities of an attorney, as contrasted with those of a paralegal.
• Low divergence - the service can be provided with narrowly skilled employees
performing routine tasks, and the result is consistent quality at reduced cost.
• Eg :- Firms like H & R Block have sought high-volume, middle-class taxpayers
by creating a low-divergence tax service for those seeking help in preparing
standard tax returns.
• High divergence - It is characterized as a niche strategy that seeks out
customers who are willing to pay extra for the personalization.
• Eg :- A hair-styling salon for men.
• Low complexity - Narrowing the scope of a service by specializing is a focused
strategy that results in low complexity.
• Eg :- Speciality shops
• High Complexity - To gain greater market penetration or maximize the
revenue from each customer, a strategy of adding more services can be
initiated, thereby creating a structure with high complexity
• Eg :- supermarkets have evolved into superstores
Structural Alternatives for family restaurant