asper school of business wework - mbacasecomp.com€¦ · long term strategy wework vision. wework...
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WEWORKAsper School of BusinessConnect Consulting
Jeremiah KoppArly AkerstreamMatt SchaubroeckDevin McManus
KEY ISSUE
In what ways should WeWorkextend product offerings as a mission driven company?
Analysis Alternatives Implementation Financials
RECOMMENDATION
Grow WeWork`s global brand offerings and market
opportunity
Analysis Alternatives Implementation Financials
RECOMMENDATION
Grow WeWork`s global brand offerings and market
opportunity
Strategic Goals
Expand service offerings and
delivery
Proliferate and penetrate new
markets
Analysis Alternatives Implementation Financials
VALUE PROPOSITION
Connecting the WeGeneration
Attractive working and
living
Community
Group Services
Affordability
Analysis Alternatives Implementation Financials
WEWORK VALUES Inspired
Entrepreneurial
TenaciousGrateful
Together
Authentic
Analysis Alternatives Implementation Financials
WEWORK VALUES Inspired
Entrepreneurial
TenaciousGrateful
Together
Authentic
Mission“Create a world
where people work to make a life, not
just a living”
VisionAnticipate and
embrace work, live, play paradigm
shift
Analysis Alternatives Implementation Financials
BUILDING COMMUNITY
Physical infrastructure Technology Human
interaction Empowerment
Analysis Alternatives Implementation Financials
BUILDING COMMUNITY
`You can`t just hear about it, you have to feel it`
Analysis Alternatives Implementation Financials
PRODUCT AND SERVICE OFFERINGSPlatform for
Workplace, Community, and Service
0
2000
4000
6000
8000
10000
12000
WeWork Market Value
WeWork vs Market Value
WeWork vs Market Value
-group work-health insurance-lower pricing-source vendors faster-hiring and retention-reduced fees
Analysis Alternatives Implementation Financials
MARKET OPPORTUNITY
0
50000
100000
150000
200000
250000
300000
350000
400000
2009 2014 2016 2018
Membership
Membership
$16. 5 billion
valutation
$1.2 billion in revenue
Number of Stores: 15 42 112 370
Analysis Alternatives Implementation Financials
CONSUMER PROFILE Gender: male and female
Age: 18-35, millenials
Location: dense, urban centers
Targets: NGOs, small businesses, professionals, enterprise
Interests: Searching for community
Analysis Alternatives Implementation Financials
ENVIRONMENTAL ANALYSISStrengths:
-brand and identity leader-month to month flexibility
-low barriers to entry-vision and disruption
-increase communal interaction through additional service offerings
-expand into markets internationally-convert consumers to embrace communal living
Concerns:-trend dependent-CEO dependent -non proprietary
-unpredictable revenue streams
Threats:-economic and political changes to trends-shift in market trends and preferences
-local competitors-executive health and wellness
Analysis Alternatives Implementation Financials
LONG TERM STRATEGY
WeWorkVision
WeWork WeLive WeCommunity WeWorld
Analysis Alternatives Implementation Financials
ALTERNATIVES
Acquire office retail space company
Short-term stay concept
Grow WeWork’s global brand offerings and market
Analysis Alternatives Implementation Financials
ALTERNATIVE 1: ACQUIRE OFFICE RETAIL SPACE COMPANY
Become market leader through
purchasing competitive
companies, such as Regus
Strengths Weaknesses
Analysis Alternatives Implementation Financials
ALTERNATIVE 2: SHORT-TERM STAY CONCEPT
Create hotel concept that
includes rooms for short-term stay with WeWork
conference and office amenities
Strengths Weaknesses
Analysis Alternatives Implementation Financials
ALTERNATIVE 3: GROW WEWORK’S GLOBAL BRAND OFFERINGS AND MARKET
Expand service delivery of WeWork and WeLive
Penetrate new regional and demographic markets
Strengths Weaknesses
Analysis Alternatives Implementation Financials
Idea advances mission and cultures• Embodiment of learning mindset
Market opportunity• Expand beyond millennials, startups, polished professionals
Competitive advantage• Community-focused, people-oriented, accessibility
Strategic value• Enhances focus on creating community while remaining financially stable
DECISION CRITERIA
Analysis Alternatives Implementation Financials
ANALYSIS OF ALTERNATIVESAlternative 1: Acquire
Alternative 2: Short-term stay
Alternative 3: Global offerings
Advances mission and culture
Market opportunity
Competitive advantage
Strategic value
Analysis Alternatives Implementation Financials
RECOMMENDATION
Grow WeWork`s global brand offerings and market
opportunity
Analysis Alternatives Implementation Financials
TWO GROWTH OPPORTUNITIES
Expand and enhance current brand
offerings
WeWorkmodel WeLive
Penetrate new markets
New regions New demographics
Analysis Alternatives Implementation Financials
BUILD ON WEWORK`S BRAND SUCCESS
• WeTravel: member offices in airports worldwide• Snacks, coffee, couches
Enhance global resource access
• Expand WeWork app to provide additional resources and services
Expanded virtual
resources
Analysis Alternatives Implementation Financials
THE NEW WEWORK APP
• Facetime meeting capacity• Include member bios – mirror
LinkedIn• Mentorship opportunities
Virtual meeting platform
• `Members-only kijiji`• Sharing/selling/renting platform
Online community
sharing platform
Analysis Alternatives Implementation Financials
NEW WEWORK RENTAL OPPORTUNITIES
Musicians
• Practice space
• Communal instruments
• Instrument storage
Events
• Rent out available event and meeting rooms by the hour
Corporate
• Fee discounts for member-enterprise companies
Analysis Alternatives Implementation Financials
BUILD ON THE WELIVE MODEL
• Access for travelling WeWork members• Community alternative to business hotels
Short-term accomodation
• Community gardens• Meditation rooms• Car share and bike share services
Enhanced living space
• Demonstrate ‘apples to apples’ comparison vs. traditional apartment living
Online value calculator
Analysis Alternatives Implementation Financials
Office and apartment in same building
Enhanced community model in single space
Integrates company values
AMALGAMATE WEWORK AND WELIVE
Analysis Alternatives Implementation Financials
EXPANSION INTO NEW DEMOGRAPHICS
Young families
• Group environment for children
• Parental support• Daycare
opportunity
Immigrant families
• First residence in new country
• Maintains communal cultural norms
Senior communities
• Communal model a healthy lifestyle
• Lower cost than alternatives
Analysis Alternatives Implementation Financials
EXPANDING INTO NEW REGIONS
WeWork
Major urban centres
worldwide
Entrepreneurial communities
Young/immigrant families
North America large urban
centres
Areas with high immigration
Senior communities
Japan
Florida
Panama
Analysis Alternatives Implementation Financials
HR TALENT AND RECRUITMENT STRATEGY
Maintain young staff, cultural fit
Local talent to local network
Develop and mentor
Company culture
paramount
Analysis Alternatives Implementation Financials
MARKETING
Maintain word-of-mouth marketing
Direct outreach
to universities
Possible government
contracts
Analysis Alternatives Implementation Financials
EXPORT THE ‘WEOS’ BUSINESS MODEL
Proprietary business model a
key asset
Act as consultant in merchant
development
Provide template for real estate
renovation
Analysis Alternatives Implementation Financials
TIMELINE
Analysis Alternatives Implementation Financials
INVESTMENTS
Analysis Alternatives Implementation Financials
PROFITABILITY
Analysis Alternatives Implementation Financials
SCENARIO
Analysis Alternatives Implementation Financials
RISK MITIGATION
Analysis Alternatives Implementation Financials
KPIS
Analysis Alternatives Implementation Financials
CONCLUSION
Grow WeWork`s global brand offerings and market
opportunity
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