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weworkTo the Board of WeWork

From Nanyang Consulting

Nanyang Business SchoolDeeksha Bajaj

Bohao ZouZeeshan AshrafWendell Shirley

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Agenda• Problem Statement• Analysis• Recommendations

• welearn• weconnect• wehelp

• Evaluation of Alternatives• Balanced Scorecard• Financial Management• Implementation Timeline• Risk Mitigation• Key Takeaways

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Problem Statement

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Average length of stay is 12 months

Competition across customer segments (e.g. Starbucks)

Economic downturn might impact the occupancy rate

How can wework extend its product offerings?

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Analysis – Customers

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Small and Medium Enterprises Large Enterprises

80% 20%• Start-ups renting spaces for 1-2 persons

• Reasono Lower costso Connecting with other people

• Companies such as HSBC and KPMG

• Reasono Temporary new divisionso Capacity constraints

Small and medium enterprises have a majority share

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Recommendations

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weconnect – Connect existing members with investors

wehelp – Provide consulting services to MNCs and big local corporations

welearn – Launch learning initiatives for existing and potential members

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Evaluation of Alternatives

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Mission Consistency

Potential Profitability

Existing Capabilities

Strategic Value Overall

Launch learning initiatives - welearn

Expand into travel / hotel business – leveraging welive

Connect existing members with investors – weconnect

Provide consulting services for enterprises -wehelp

Favorable Unfavorable

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welearn

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welearn

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Expand to professional training area

• Enhance community in wework• Grow business for members• Example – ‘make friends and learn at school’

OBJECTIVE

• Professional skills training• Mentorship• Example – webpage, SEO, ‘selling business ideas’

PRODUCT

• USD 20-30 per session

PRICE

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welearn

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Start with entrepreneur friendly countries

• SMEs, Freelancer, Artists• Open to non-members

TARGET

• Wave 1 – US, China, Israel• Wave 2 – Other locations

LOCATION

Selection criteria• Population of entrepreneurs• Existing infrastructure

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welearn

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Strengthen ‘community’ culture

BENEFITS

Strengthen the relationship among members

Building an ecosystem

Low cost

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Success story – XiaoMi in China

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weconnect

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• Co-working• Connecting work to making life

• SMEs• Artists and freelancers

weconnect

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Connect existing wework members with venture capitalists

Member profiles

Mission

• Cheaper alternatives• Flexible• Business and service opportunities

Value Proposition

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weconnect

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Acquire new members by increasing value proposition

IMPLEMENTATION PLAN

Publish member profiles with company performances on monthly basis

Connect existing members with incubators such as C100 and Founder Fuel (Silicon Valley)

Monetize welink by charging venture capitalists USD 10,000 annually

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weconnect

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Develop in-house IT system to drive insights through data analytics

IMPLEMENTATION PLAN

Register new members

Onboard venture capitalists

Publish profiles monthly

Update member database

1. Maintain members’ and VCs’ database in IT systems2. Send weekly newsletters to investors3. Analyze data for new and lost members

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wehelp

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wehelp

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Leverage internal expertise to introduce new product offerings – external consulting

• Promote the weculture to the whole business world

OBJECTIVE

• Consulting teams composed of data analysts, designer and architects• Example – DHL consulting and Siemens Consulting

PRODUCT

• USD 1-2MN per case

PRICE

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wehelp

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Target big corporations to drive profits

• MNCs and big local corporationso Facebook and google

TARGET

• Wave 1 – US, Israel• Criteria – existing infrastructure and knowledge

LOCATION

• 3-6 Months

DURATION

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wehelp

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Build on existing success stories

BENEFITS

Expand ‘weculture’ to the whole business world

Capitalize existing expertise and data

Leverage on your success story

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Balanced Scorecard

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Balanced Scorecard

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Learning

How long do teams need to be ready before external consulting projects?

Internal

How long does it take to build WeLearninfrastructure (technology, promotion)?How fast the worldwide buildings can

launch the new product offerings?

Customers

How many investors you attract per year?

What is the retention rate of members and investors?

Finance

What is the ROI of the new product offerings?

What is the growth rate of the WeWorkcommunity?

ROI?

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Financials, Implementation, Mitigation

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Financial Management

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Assumptions

36.25% Leasing cost based on $160/sqft. run rate for $58/sqft. lease cost in New York City$1B Annual Run Rate in 20171 Million Members by 2021

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Financial Management

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2017: 112 Buildings 13 Countries 34 Cities 100,000 Desks

2021: 1400 Buildings 35 Countries 200 Cities 1.25M Desks

welearn wehelpweconnect$20/class

50% average monthly member participation

$10,000 subscription fee $1-2 Million per 3-6 month Consulting Project

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Financial Management

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Implementation Timeline

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2017 2018 2019 2020 2021welearnDevelop learning applicationSource speakersweconnectRegister and publish member profilesReach out to investorswehelpConsulting training for employeesDevelop frameworksCreate sales packages

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Risk Mitigation

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Identified Risk Proposed Mitigation

WeLearnQuantity of attractive learning topics

Utilize the WeOS technology platform to perform cognitive analytics on member expertise to discover topics of interest

WeConnectInvestor community not renewing

subscription due to lack of success

Host events to attract interested investors from areas outside WeCities

WeHelpInsufficient in-house expertise to meet

client demand

Use in-house project leads and partner with other professional service firms to

meet client needs

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Key Takeaways

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How can wework extend its product offerings?

Launch learning initiatives - welearn

Connect existing members with investors – weconnect

Provide consulting services for enterprises -wehelp

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Questions?