Mcmaster4 Coworking Presentation

WeWork: Welcoming WeExplore
DeGroote Consulting, Product Strategy Division
Sarah Schweinberger
Briana Knowlton
Michael Widlicki
Shelby Gorelle
1
Opportunity Statement
Given WeWork mission, culture, assets and strategic advantages, in what
ways should the organization extend its product offering, specifically in the
context of its DNA as a mission-driven company?
2
Recommended Solution
We recommend that WeWork leverages its deeply rooted mission, culture and
strategic advantages to create a new product offering, WeExplore, for its target
millennial consumer base.
WeExplore mission statement: To create world where people work to

travel, not travel to work.
3
Key Considerations
4
Key Considerations
Mission and
Vision
Market
Opportunity
Competitive
Advantage
Product
Synergies
Key Issues Analysis Alternatives Solution Execution Contingency 5

Key Considerations
• Recommendations must
complement, not cannibalize,
WeWork existing product portfolio
• Successful synergy will allow
WeWork to tap market shares of its
other community initiatives

Key Considerations
• Among WeWork core

competencies include real estate
and software development
• Business opportunities aligning
with these core competencies
require less upfront investment
• Level of competition within
markets must also be identified

Key Considerations
• Market size and speed of

penetration must be understood
and strongly considered when
proposing a new product for
WeWork

Key Considerations
• The WeWork mission and its focus

on community is truly the
organization’s core
• Recommendations must align well
with these values
• The mission and the business are
linked (as the mission grows, so
does the bottom line)

Key Considerations
Key Takeaway: The identify of

WeWork as an organization is
essential; it must not be
compromised when looking to
expand the firm’s product
offerings.

Analysis
11
Strategy Mix Analysis
Global Industry
Analysis Analysis
Target Firm
Market Analysis

United States
• Pop’n: 316M
Global Industry
Analysis Analysis • Individualistic
• WeWork in 19 major
cities
Target Firm
Market Analysis

United States
• Pop’n: 316M
Global Industry
cities
Target Firm
Market Analysis
Canada
• Pop’n: 36M
• Individualistic
• WeWork in 1 major city

United States
• Pop’n: 316M
Global Industry
cities
Target Firm
Market Analysis
Canada
• Pop’n: 36M
• Individualistic
China
• Pop’n: 1.3B
• Collectivist

United States Europe
• Pop’n: 316M • WeWork in 3 major
Global Industry
Analysis Analysis • Individualistic countries (UK, France,
• WeWork in 19 major Germany)
cities • UK pop’n: 41M
• France pop’n: 60M
Target Firm
Market Analysis • Germany pop’n: 80M
Canada • Individualistic
• Pop’n: 36M
• Individualistic
China
• Pop’n: 1.3B
• Collectivist

Global Industry
Target Firm
• Pop’n: 36M
• Individualistic Mexico
• WeWork in 1 major city • Pop’n: 120M
• Collectivist
China
• Pop’n: 1.3B
• Collectivist
cities

Global Industry
Target Firm
• Pop’n: 36M
• Collectivist
China
• Pop’n: 1.3B India
• Collectivist • Pop’n: 1.25B
• WeWork in 2 major • Collectivist
cities • Coming soon!

Global Industry
Target Firm
• Pop’n: 36M
Key Takeaway: WeWork has • Collectivist
proven that it can establish • WeWork in 1 major city
China
itself globally; it can leverage
• Pop’n: 1.3B India
these connections to expand
• Collectivist Pop’n: 1.25B
its business in these regions. WeWork in 2 major
•
• • Collectivist
cities • Coming soon!

Porter’s Five Forces Analysis:
The Sharing Industry
Global Industry
Analysis Analysis
Buyer
Power
Target Firm
Market Analysis
Threat of Industry Threat of

New
Entrants Rivalry Substitutes
Supplier
Power

Buyer
Power
Threat Level: High

• Many substitutes available
• Sharing option must be
Threat of Industry
New
Rivalry
Threat of
Substitutes
perceived as a value add
Entrants
Supplier
Power

Threat Level: High

Buyer
Power
• Sharing companies do not

own their tangible assets,
the asset owner has high
Threat of
New
Industry Threat of power in what they will or
will not allow
• Suppliers have power to set
price
Supplier
Power

Threat Level: Medium

Buyer
Power
• Sharing is trendy; firms want

to move into this trendy
space
Threat of
New
Industry Threat of • First mover advantage is
important
• High start up costs create
barriers to entry
Supplier
Power

Threat Level: Medium

Buyer
Power
• Abundance of traditional
options (hotels, taxis, single
homes, workspaces, etc.)
Threat of
New
Industry Threat of • People are looking for
sharing options however,
because it adds value
(cheaper, less accurate in
personnel projections)
Supplier
Power

Threat Level: High

Buyer
Power
• First movers become the

preferred choice; it is
difficult to take away their
Threat of
New
Industry Threat of customers
• There are a few large
players owning the market
share
• Accessible on a small scale
Supplier
Power

Buyer
Power
Key Takeaway: The Sharing Industry is

trendy but competitive; first mover’s
advantage, paired with creativity, is
Threat of
New
Industry Threat of crucial.
Supplier
Power

Global Industry
Analysis Analysis Strengths
• Deeply rooted culture and value set
• Focus on community; resonates with target
Target
Market
Firm
Analysis
market
• Mission driven employees with
complementary skillsets
• Modern design, appealing space
• Empowering environment
• Strong valuation and investor support
• Well established foundation that can be
translated into different business
opportunities

Global Industry
Analysis Analysis Weaknesses
• Viewed by critics as pricy
• Room for improvement with brand
Target
Market
Firm
Analysis
awareness, particularly in smaller cities
• Dependent on real estate industry and
overall employment rate of host countries

Global Industry
Analysis Analysis
Key Takeaway: With its deeply rooted philosophy
and focus on community, WeWork is a
Target Firm established a strong foundation which it can
Market Analysis leverage when exploring new business
opportunities.

Who is your target market? Introducing Pat the Millennial.
Global Industry
Who is Pat?
Analysis Analysis
Target Firm
Market Analysis

Global Industry
Who is Pat?
Analysis Analysis
• Age: 28 years
Target Firm • Gender: Male or Female
Market Analysis • Values community, exploration and travelling
• Wants to feel that he or she has a “purpose”
• Work to live mentality, but has a passion for their job
• Feels that the work they’re doing is meaningful
• Travelling and working is an appealing combination,
not tied to a specific location
• Comfortable with new situations/ambiguity

Global Industry
Who is Pat?
Analysis Analysis
• Age: 28 years
Target Firm • Gender: Male or Female
Market Analysis • Values community, exploration and travelling
• Wants to feel that he or she has a “purpose”
• Work to live mentality, but has a passion for their job
• Feels that the work they’re doing is meaningful
• Travelling and working is an appealing combination,
Key Takeaway: Pat’s needs must not tied to a specific location
be considered when developing • Comfortable with new situations/ambiguity
a recommendation.

Financial Analysis of Boston WeWork
Assumptions
Av erage of Dedicated desk and Priv ate Office 400
Number of Av ailable Desks 20,000
Av erage WeLiv e Pricing (murphy/4 bdrm.) 2,375

Financial Analysis of Boston WeWork
Key Takeaway: WeWork currently has a large customer base that can be used to
cross-sell complementary products to create value for both WeWork and the member

Alternatives
35
Alternatives
WeMove – Ride sharing for vehicles bikes and car sharing
• Attractive in current • Doesn’t align well with

locations competencies ( no
• Millennials are trending vehicle experience)
towards not wanting to • Insurance complications
own vehicles (experienced by Uber)
• Legal and public
retaliation
Key Takeaway: WeMove has a large customer base and technological competencies,
but vehicle management and legal/Government learning curve would be capital
intensive
Alternatives
WeExplore – Shared Travel Space
• Hostels are popular with • Experience resistance

millennials already from landlords if
• WeWork has the community is disruptive
competencies and assets • Plan is heavily reliant on
(real estate & tech) successful staffing
• Channel to foster • Greater competencies
community will have to be
developed in “travel”
locations
Key Takeaway: Plan directly leverages competencies in both Real Estate and
Technology, greater competencies will have to be developed in Foreign Markets

Alternatives
WeConnect – Bolster the app with: Marketplace, Social Network, and Job Board
• Quick rollout • Social media space is

• Current Application base rather crowded
already exists • Not a directly revenue
• Will directly address generating proposal
members large • Customer base may feel
engagement in the the offerings are
online community redundant in comparison
to existing solutions
Key Takeaway: WeConnect allows for the quickest roll out directly address the
member community need to communicate. Unfortunately the offerings may be
redundant in regards to existing solutions
Decision Matrix
Key Considerations Weight WeMove WeExplore WeConnect
Mission and Vision 0.30 3 5 3
Market Opportunity 0.25 5 5 3
Competitive Advantage 0.25 1 3 3
Product Synergies 0.20 1 5 3
TOTAL 1.0 2.6 4.5 3
1 – does not address

5 – fully addresses



Implementation Plan
41
Implementation Overview
WeWork mission statement: To create a world where people work to
make a life, not just a living.

Implementation Overview
WeWork mission statement: To create a world where people work to
make a life, not just a living.


What is WeExplore?
• Another way for members to leverage their WeWork and/or WeLive
membership and recognize even more value
• An opportunity for members to experience new cultures and
countries within the WeWork network
• A flexible plan that allows members to (a) work while they travel or (b)
leave their work at home

How Does WeExplore Work?
Pat is a hard worker, and decides that he deserves a break. He is already
a member of WeWork and loves the service – and he’d love to take it with
him when he leaves.

him when he leaves.
Pat learns about WeExplore from his office mate, Jennifer. Curious he
downloads the WeExplore app.

him when he leaves.
Pat learns about WeExplore from his office mate, Jennifer. Curious he
downloads the WeExplore app.
Pat sees a list of destinations, include major global cities such as New York,
Shanghai and Berlin. Pat has never been to Berlin, so decides its worth
exploring.

Ben selects his date and time.

Berlin? Great choice!
When would you like to visit?

Date
Time

Pat selects his date and time.


01/01/17
11:00am EST
Pat then selects a travel plan that best suits his needs.

The Travel Plans
Visit
• Lowest price point

• Dorm style
accommodation
• Bunkbeds, shared
restroom
• Shared kitchen unit

The Travel Plans
Visit Experience
• Lowest price point • Medium price point

• Dorm style • Semi-private rooms (2
accommodation people) with double
• Bunkbeds, shared beds
restroom • Shared kitchen unit
• Shared kitchen unit and restrooms
• Shared local • Shared local
“WeWork” member “WeWork” member
guide guide

The Travel Plans
Visit Experience Immerse
• Lowest price point • Medium price point • Highest price point

• Dorm style • Semi-private rooms (2 • Suite-style
accommodation people) with double accommodation
• Bunkbeds, shared beds • Shared kitchenette
restroom • Shared kitchen unit and common area
• Shared kitchen unit and restrooms • Personal washroom
• Shared local • Shared local • Shared local
BackPack buddy BackPack buddy BackPack buddy



Date
Time
Pat then selects a travel plan that best suits his needs – he has
determined that the “Immerse” plan offers him the best value.
Immerse Plan
$X,XXX.XX



01/01/17
11:00am EST
Pat then selects a travel plan that best suits his needs – he has
Immerse Plan determined that the “Immerse” plan offers him the best value.
Please select a location.
Location A
Location B Finally, Pat is prompted to select a location that best suits his
Location C needs – the location will include both accommodations, as well
as the closest WeWork office building.

Once details have been finalized, final payment will be prompted, and Pat will be able to finalize
the details of his trip.
When Pat arrives in Berlin, he will be welcomed by a local WeWork employee, otherwise known as
a “BackPack” buddy, to help him feel settled, and get to know members residing in his
accommodations.
The BackPack buddy will then provide him with a list of potential tours that he may take advantage
of, as well as fun excursions, allowing Pat to immerse himself into the culture of his host country.

Timeline
0 2 4 6 8
months month month month month
1 3 5 7
month month month month
Gather – scout locations
*leases are signed Recruit – find WeExplore staff
Assumption: assumes Organize – Design WeExplore space

negotiations are
immediate Understand - Train new staff
Promote – utilizing existing apps and social media

Cost and Breakeven
Visit Experience I mmerse
Room Price 55 75 95
Rev enue 30days 1650 2250 2850
Cost (Lease Buidling Ow n 40% 660 900 1140
Operating I ncome 60% 990 1350 1710
10% of Desks 2000 667 667 667
Operating I ncome 660,000 900,000 1,140,000
Upfront Cost to Building Ow ner 21,600,000 Full Year Lease Cost
Occupancy 100% 32,400,000

90% 29,160,000
80% 25,920,000
70% 22,680,000
60% 19,440,000

Contingencies and Risks
58
Contingencies and Risks
Situation Trigger Likelihood Solution
Unable to recruit Guests complaining Low Double down on
adequate and about poor social media promo
skilled WeExplore experiences or and recruitment
Staff unenthused guides resources
Travelers are price Low traction and Low Reinforce added
sensitive and feel customer value and package
that prices are too complaints about services that
high price WeWork provides
WeExplore fails to Use of WeExplore Medium Look in to acquiring
expand outside of services coming well known hostels
current member only from existing for shared resources
base members and knowledges

Value Met? Explanation

Inspire  Gives members the opportunity to
experience the world in other cultures
Entrepreneurial  Learn from other cultures, tours that
involve industry knowledge from that area
Authentic  Staff are locals who know the culture
Tenacious  Expand ambitiously
Grateful  Tours that do social good
Together  Community building through shared
accommodation
60
Appendix
61
KPIs
• # of reservations made
• Proportion using multiple products
(WeWork, WeLive, and WeExplore)
• Traveller satisfaction
• Portion booking each plan (are we
adding enough value with more
expensive plans
• Marketing measure
62

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WeWork: Welcoming WeExplore

DeGroote Consulting, Product Strategy Division

WeExplore mission statement: To create world where people work to

Key Issues Analysis Alternatives Solution Execution Contingency 5

Key Issues Analysis Alternatives Solution Execution Contingency 6

• Among WeWork core

Key Issues Analysis Alternatives Solution Execution Contingency 7

• Market size and speed of

Key Issues Analysis Alternatives Solution Execution Contingency 8

• The WeWork mission and its focus

Key Issues Analysis Alternatives Solution Execution Contingency 9

Key Takeaway: The identify of

Key Issues Analysis Alternatives Solution Execution Contingency 10

Key Issues Analysis Alternatives Solution Execution Contingency 12

Key Issues Analysis Alternatives Solution Execution Contingency 13

Key Issues Analysis Alternatives Solution Execution Contingency 14

Key Issues Analysis Alternatives Solution Execution Contingency 15

Key Issues Analysis Alternatives Solution Execution Contingency 16

Key Issues Analysis Alternatives Solution Execution Contingency 17

Key Issues Analysis Alternatives Solution Execution Contingency 18

Key Issues Analysis Alternatives Solution Execution Contingency 19

Threat of Industry Threat of

Key Issues Analysis Alternatives Solution Execution Contingency 20

Threat Level: High

Key Issues Analysis Alternatives Solution Execution Contingency 21

Threat Level: High

• Sharing companies do not

Key Issues Analysis Alternatives Solution Execution Contingency 22

Threat Level: Medium

• Sharing is trendy; firms want

Key Issues Analysis Alternatives Solution Execution Contingency 23

Threat Level: Medium

Key Issues Analysis Alternatives Solution Execution Contingency 24

Threat Level: High

• First movers become the

Key Issues Analysis Alternatives Solution Execution Contingency 25

Key Takeaway: The Sharing Industry is

Key Issues Analysis Alternatives Solution Execution Contingency 26

Key Issues Analysis Alternatives Solution Execution Contingency 27

Key Issues Analysis Alternatives Solution Execution Contingency 28

Key Issues Analysis Alternatives Solution Execution Contingency 29

Key Issues Analysis Alternatives Solution Execution Contingency 30

Key Issues Analysis Alternatives Solution Execution Contingency 31

Key Issues Analysis Alternatives Solution Execution Contingency 32

Key Issues Analysis Alternatives Solution Execution Contingency 33

Key Issues Analysis Alternatives Solution Execution Contingency 34

• Attractive in current • Doesn’t align well with

• Hostels are popular with • Experience resistance

Key Issues Analysis Alternatives Solution Execution Contingency 37

• Quick rollout • Social media space is

Mission and Vision 0.30 3 5 3

Market Opportunity 0.25 5 5 3

Competitive Advantage 0.25 1 3 3

Product Synergies 0.20 1 5 3

TOTAL 1.0 2.6 4.5 3

1 – does not address

Key Issues Analysis Alternatives Solution Execution Contingency 39

WeExplore mission statement: To create world where people work to

Key Issues Analysis Alternatives Solution Execution Contingency 40

Key Issues Analysis Alternatives Solution Execution Contingency 42

WeExplore mission statement: To create world where people work to

Key Issues Analysis Alternatives Solution Execution Contingency 43

Key Issues Analysis Alternatives Solution Execution Contingency 44