‘‘WeWork’’ is a real estate American company that provides the service of shared co-working space to freelancers, young tech companies, individual or group startups, big or small meetups, small and medium enterprises, and conference halls and professional meeting rooms. The main purpose of companies like WeWork is to provide young entrepreneurs and group startups inexpensive and economical shared co-working space, where they’d have an opportunity to meet and collaborate with entrepreneurs, tech startups, and other like-minded people for the common goal.
WeWork executes its business operation under the brand of parent company ‘The We Company,’ and it began executing its business operations in 2010. The company reached roundabout in 37 countries only within 10 years, and it had 848 worldwide shared workspaces by the end of 2019.
The company, WeWork, offers services to its tenants at its spaces like split phone booths, office stationery, speedy internet connection, papers, printers and free snacks like drink, tea, and coffee.
The company’s head office is situated in New York City, New York, USA. It also goes by many brand names like; WeGrow, Rise by We, WeLive, WeWork, WeWork Labs.
Now, we should study the core strengths that made the company to progress so fast in a very short time. The potential weaknesses that could jeopardize the growth of the company; what opportunities the brand should take advantage of and potential threat the management should avoid. We’ll discuss SWOT Analysis of WeWork as follows;
The main objectives of every new business are growth and goes beyond borders. WeWork has been fortunate in this regard, it has workspaces in the major developed countries like the US, Canada, Germany, UK and more than 37 countries across the world. Global reach has given the ‘WeWork’ brand a unique international status.
Softbank, JP Morgan, Benchmark and Adam Nuemann are the major stakeholders of the company. The total valuation of the ‘We Company’ was 47 billion US dollar at the beginning of 2019. According to the report of the Wall Street Journal in 2019, Soft Bank was planning to give Adam 1.7 billion US dollars to Adam if he’d give up his position from the board members.
Approximately more than 15000 are currently working for the ‘WeWork.’ As we know that human capital is an irreplaceable asset of an organization. Hard-working, loyal and dedicated staff are the main reasons behind the success of the company in a very short period.
Low Cost and Economical
When you compare the prices and services the WeWork is offering like separate phone booths, conferences and meeting halls, snacks and much more. Then you’d find the shared co-workspace of WeWork very economical and inexpensive. That’s why young freelancers, entrepreneurs, and startups prefer WeWork.
Various Business Segments
When we talk about the parent company, We Company, then you’ll see many subsidiary companies like WeLive, WeRise, WeMRKT, and WeWork. The point is that the company is targeting multiple business segments of the market to reach more people. It because not everyone is a freelancers or an entrepreneur, you just can’t rely on the few segments of the market. Therefore, the parent company is widening its business segments to reach more people.
Diverse Product and Services
Products and services the company is offering are limited to entrepreneurs and freelancers. Companies, SME, and group startups also use the shared workspace of WeWork. If the brand had focused on only one segment of the market, then it would have reached the limited audience and few people would have been using WeWork.
The parent company has an in-house advertising agency. It means that WeWork doesn’t have to worry about its marketing campaign and advertisement. The brand would take care of the rest.
Intense Work Environment
Cool minded people avoid choosing wework because the working environment of its workspaces is intense. It’s so intense sometimes that it results in the form of stress. People usually leave stressful jobs to be a freelancer and work for themselves, and then they ask them why they should come again at a place the kind of space they have already left.
Often it’s very difficult for the newcomers to adjust at the shared workspace of the WeWork. It’s because the people who are already there, they are familiar with the staff and other tenants as well. Sometimes, they are working collectively. When a new person rents a space, then he finds himself in a very peculiar position where everyone else is working in a team, and he feels being neglected.
Open working atmosphere, free high-speed internet connection and snacks attract many people and bring them at the platform of WeWork. Therefore, it results in the form of overcrowdedness. Some people would like to work in a quiet place where there are few people. When there are more people, there would always be something to talk about. Sometimes, it’s very difficult for people to focus on their work in a place like this.
Some people have witnessed a clash and conflict between the operational management and the merchandising department. Although it happened at the other business segment of the parent company, but it conveys a very bad image of the brand. Negative marketing isn’t good for the reputation of the company.
The in house advertisements for the WeWork don’t convey the exact message of the workspaces; because the parent company focuses on all the market segments.
Contradiction between tenants & Company’s Goal
Tenants who are renting the shared workspaces, they have a completely different mindset and different gaols. Company’s goals and objectives, on the other hand, are completely different. Therefore, WeWork shouldn’t align its objectives with the goals of the tenant because they can’t be on the same page.
When it comes to sharing information about other tenants; the management of the WeWork doesn’t provide any information. It’s good for the security point of view. But you have to know about your partner if you’re planning to work with him in the future.
Independent Mail System
WeWork provides the service of mail handling in terms of receiving. If the company starts providing on-demand mail receiving and delivery service, then it would attract many sophisticated authoritative users.
Home Office Service
If the company maintains a record of interest and preferences of people; when they come to check out the workspaces, then it would help the management to established new workspaces like home office.
Alliances with other Firms & Countries
As we know that the WeWork brand is expanding globally. If the company begins to merge, acquire and partnering up with other brands and companies. Then it can double its growth and expansion.
Office Max, Office Depot and Regus are some of the main direct competitors of WeWork. They offer the same products and services; the company should provide a unique experience to its tenants. So the people prefer workspace of WeWork over others.
Some people are price conscious if the company offers certain workspaces at a low price. Then marketers can target price-conscious customers.
Conclusion: SWOT Analysis of WeWork
The shared co-workspace industry is becoming very competitive because there are many competitors exist in the market. However, the company must differentiate itself by offering wide workspaces. So the tenants don’t feel like overcrowded workspace because many issues come with the crowd. If the place is big, then they won’t feel like crowdedness.