PACT Magazine

Customer Cost Structure
The company cost structure that Pact implements will employ a small tech support
resource with a larger online resource in relation to customer care. A web page
devoted to FAQ’s and error responses will allow for less staff although if this option
does not solve the customer’s needs, the tech support service is available. Should
the tech support service not be able to solve the problems at hand, the customer
will receive a replacement Pact system. The cost incurred from the customer cost
structure involves web maintenance, tech support staff wages and the cost of
product replacement.
Activities
The key activities which are fundamental in fulfilling the value proposition of Pact
are research and development, production and marketing. As the Pact system aims
to engage a new market, acquiring a first mover advantage and staying innovative
is crucial to Pact’s success. New product research, new product development,
existing product updates, quality control and innovation are areas primary areas for
Pact. Key activities in production include the production process, managing and
maintaining the production capacity, production planning and also quality control.
Strategy, market research, communications and sales support are all key marketing
activities which are crucial to the value proposition of the company.
Resources
Pact is a product driven business which relies heavily on intellectual and human
resources. The expertise of the company founders enables intensive, in-house
task-loading, therefore exempting the company from high outsourcing costs. Other
key resources imperative to the business’s success include software and product
support. The key business resources are talented, multi-skilled employees, a reliable
cloud software base, sound IP protection and accessibility to market data to allow
the company to continuously innovate and retain a competitive advantage.
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