Never Settle! Presenting to: Adam Neumann, Founder and CEO of Wework Montreal, January 4, 2016
Driving Question In what ways should you look to extend your product offering? Mission driven company Growing competition 2017-01-05 2
Solution Preview Recommended Strategies 1 Expand the wework business model to Barcelona (Spain) Offer new concept of WeBuilding in San Francisco Area Targeted Outcome 3 Yearly sales increase of $350 million 2017-01-05 3
Agenda Status Quo Analysis Generation of Ideas Implementation of Ideas Future Outlook Conclusion 2017-01-05 4
Weworks Mission Leads to Ambitious Goals To Create a World where People Work to Make a Life, Not Just a Living 336 more workspaces by 2018 260,000 new signed members 34,000 people to join Welive 1 million members within 5 years 2017-01-05 5
Weworks Business Model as an Edge Over the Competition 12,000 10,000 8,000 6,000 4,000 2,000 Annual Space Costs ($ per Employee) US $2,550 7,800 10,350 Facts Worth US $16 bn. 200 employees 10,000 Members Gross margin 60% Rents at 0.5x and re-renting at about 1.5-2.0x Welive as ne product launchend in New York, Washingotn DC and Crystal City 0 Wework Typical Office 2017-01-05 6
Wework as a Leverage Able Business for further growth Wework & Services 4 different models Access everywhere Side services like beverages, insurances, lower credit card fees Community events Month-to-months payment Networking Assets IT operating system Your motivated employees Deep in-house expertise Design, construction, etc. Room concept Open Hundreds of small elements Mobile App Brand recognition Physical locations on 5 continents Soft-Skills Self-selecting community Vibe and Feeling Cannot be described in words We Generation Matching rate about 51% Culture 2017-01-05 7
Time, Ideas and Flexibility as Mayor Aspects for Potential Customers Millennials Startups & Creatives Polished Experts Enterprise Young people Lack of time Open minded Looking for opportunities Flexibility Staying in contact Simplicity Growing urbanization Ideas Experts Flexible workspace New employees Ideas Giving back ideas Flexible workspace Flexible space for growth New ideas New employees Make the people free of side aspects 2017-01-05 8
Agenda Status Quo Analysis Generation of Ideas Implementation of Ideas Future Outlook Conclusion 2017-01-05 9
WeCapital help creators financing their business Entrepreneur, Artist, etc. I want to grow my business and are in need of funds We are please to help you grow your business, what are your needs? wework Possible Product Lines Loans Venture Capital Leasing Payment Plans for Rent Community helps each other; empower your customers growing their business 2017-01-05 10
WeResort Integrate Business and Vacation WeRESORT Entrance Office space Hotel room Key Facts Extend the community thought into peoples holidays Combine recreation and business Enable companies to use WeResort for their conferences Different setting creates different mindset and helps people elaborate new ideas 2017-01-05 11
WeVillage Ensue closeness and a short commute to work Key Facts WeVillage offers affordable rents for customer in suburbs or village Due to office location commute time decreases for customers Recreation Area (garden, pond, pools, etc. Cheaper real-estate prices compared to cities Home or Work? It does not matter anymore; both integrate eventually 2017-01-05 12
WeBuilding - Empower Community and help people optimize they day WeLive-Tower We(Re)Creation WeWork-Tower What do people want when they have everything? TIME Mall (Shopping, banks, other services) Bring work and leisure time under one roof Offer rooftop garden enabling people escape city jungle Provide shop faculties for entrepreneurs with physical product WeBuilding will empower your community drastically 2017-01-05 13
WeCar Community members share their cars with other members Link to your application needed Through cell phone application Car-Pool provided by wewok Check availability in car pool Book car from carpool if available Possible to offer this service in combination with WeBuilding 2017-01-05 14
Agenda Status Quo Analysis Generation of Ideas Implementation of Ideas Future Outlook Conclusion 2017-01-05 15
The Best Fit for Your Mission Strategic value Growth Opportunity Customer demands Time City Life Work to make a life Community Criteria 2017-01-05 16
Prioritize the Ideas Criteria WeBuilding WeCapital WeVillage WeResort Customer Demands Mission Fitting Growth Opportunity Competition Advantages 2017-01-05 17
Prioritize the Ideas Criteria WeBuilding WeCapital WeVillage WeResort Customer Demands Mission Fitting Growth Opportunity Competition Advantages 2017-01-05 18
Where to start with WeBuilding? Market Development Market Penetration 2017-01-05 19
Develop New or Penetrate Existing Markets? Criteria Market Development Market Penetration Associated Costs Brand Awareness Growth Potential Associated Risks 2017-01-05 20
Develop New or Penetrate Existing Markets? Criteria Market Development Market Penetration Associated Costs Brand Awareness Growth Potential Associated Risks 2017-01-05 21
Implement WeBuilding in Existing Markets Criteria New York City San Francisco Berlin Hong Kong Population Brand Awareness Growth Potential Associated Costs Cultural Fitting 2017-01-05 22
Implement WeBuilding in Existing Markets Criteria New York City San Francisco Berlin Hong Kong Population Brand Awareness Growth Potential Associated Costs Cultural Fitting 2017-01-05 23
Develop New Markets with Wework in Europe Criteria Cologne Barcelona Madrid Moscow Population Economic Situation Growth Potential Cultural Fit Associated Costs 2017-01-05 24
Develop New Markets with Wework in Europe Criteria Cologne Barcelona Madrid Moscow Population Economic Situation Growth Potential Cultural Fit Associated Costs 2017-01-05 25
Agenda Status Quo Analysis Generation of Ideas Implementation of Ideas Future Outlook Conclusion 2017-01-05 26
Contingency and Risk Mitigation Impact 1 2 3 1. No adequate building available Build own ones 2. Increasing prices for real estate in cities Not necessarily downtown but first or second block around 3. Decreasing amount of creators Increase number of events Incentive mouth-to-mouth Probability 2017-01-05 27
Contingency and Risk Mitigation Impact 1 2 3 1. No adequate building available Build own ones 2. Increasing prices for real estate in cities Not necessarily downtown but first or second block around 3. Decreasing amount of creators Increase number of events Incentive mouth-to-mouth Probability 2017-01-05 28
Roadmap to WeBuilding Q1 2017 Q2 2017 Q3 2017 Q4 2017 Costs ($) Design WeBuilding Look for Real-Estate Barcelona San Francisco Plan re-building Re-building Seek potential tenants for mall Starting Event in SF *excluding operational costs Total Costs $100,000 $20,000 $30,000 $500,000 $10,000 $20,000 $680,000* 2017-01-05 29
Pricing Model for WeBuilding Living Office Living & Office Plain Rent per sqf Starting at $40 Starting at $50 Starting at $80 Service Fee $125 per month $225per month Extras Rooftop gardening; starting at $30 per month Extras WeCar scheme; starting at $10 per day Every occupant can customize their own rental plan 2017-01-05 30
Future Benefits by opening WeBuilding in SF Assumption: Building provides 300,000 sqf Living Office Living & Office Occupied space Service Fee 100,000 sqf 100,000 sqf 100,000 sqf $125 per month $225per month Extras 30% of all occupants Extras 20% of all occupants $6,049,000 $8,100,000 $10,120,000 2017-01-05 31
Future Outlook Expand WeBuilding Provide WeCapital to Creators Open WeResort 2017-01-05 32
Agenda Status Quo Analysis Generation of Ideas Implementation of Ideas Future Outlook Conclusion 2017-01-05 33
Conclusion In what ways should you look to extend your product offering? Mission driven company Growing competition 2017-01-05 34
Monday morning actions 1 Set up project team for WeBuilding 2 Check potential for rebuilding of the existing buildings. 3 Start make use of data. 2017-01-05 35