The biggest risk is not taking any risks
“The biggest risk is not taking any risks. ” Mark Zuckerberg
Beekeeper: From Pivoting Startup to Disrupting Scaleup ODETTE CONSULTING: Brandon Lalonde, Jacob Mc. Court, Jordan Neposlan, Sahi Veeraraghavan PRESENTING TO: Executive Management Team of Beekeeper
THE CHALLENGE How should Beekeeper shift their business in the next 12 months?
Agenda Situation Analysis Key Issues Alternatives Recommendation Financial Overview Implementation Plan
Agenda Situation Analysis Key Issues Alternatives Recommendation Financial Overview Implementation Plan
SWOT Analysis of Beekeeper Strengths -software platform is compliant with GDRP -big clients (Fairmont, Marriott Hotels) Weaknesses -costs are increasing and outplacing sales -multiple offices globally -product is not unique SWOT Analysis of Beekeeper Opportunities -untapped markets by workplace communication platforms (airlines) -many companies do not have GDRP compliant solution Threats -a few large North American companies control the market (Facebook, Microsoft, Slack)
PESTLE Analysis of Beekeeper P Brexit E -Risks: recessions, rising inflation -Markets are weak S T L E -Consumers are cautious with personal information Widespread use of mobile phones and app technology -Companies are adopting workplace communication platforms Global Data Protection Regulation (GDPR) Not relevant
Agenda Situation Analysis Key Issues Alternatives Recommendation Financial Overview Implementation Plan
Key Issues of Beekeeper Current Office Space Owners’ Changing Roles Engineers sync with management Organizational Difficulties Communication gaps and crosscultural differences Scaling Silicon Valley style Engineering teams – misalignment of leadership philosophy
Key Issues of Beekeeper Future Risks to be Mitigated Technology is changing keeping up the tech trend Regulatory to cover customer data Market Fluctuations London Brexitt
Agenda Situation Analysis Key Issues Alternatives Recommendation Financial Overview Implementation Plan
Alternatives for Expansion Alternative #1: North American Hospitality Industry Alternative #2: 5 Global Segments Alternative #3: European Airline Industry
Making a Decision 1 -3 4 -6 7 -10 North American Hospitality 5 Global Segments Airlines Europe Risk 3 6 3 Alignment to Regulatory GDRP 3 6 9 Size of Market 5 8 5 Technical and Industry Complexity 6 4 6 Capabilities with Current Resources 6 4 8
Agenda Situation Analysis Key Issues Alternatives Recommendation Financial Overview Implementation Plan
Making a Decision 1 -3 4 -6 7 -10 North American Hospitality 5 Global Segments Airlines Europe Risk 3 6 3 Alignment to Regulatory GDRP 3 6 9 Size of Market 5 8 5 Technical and Industry Complexity 6 4 6 Capabilities with Current Resources 6 4 8 TOTALS 23 28 31
Reasoning: Industry Breakdown 1 -3 4 -6 7 -10 Financial Services Airline Retail Manufacturing Hospitality Market Size 7 4 7 8 5 More Nontech customers 6 8 4 5 5 Head Office Decision Making in Europe 7 8 6 8 4 Complexity 5 7 5 4 5 Growth Potential 5 5 5 TOTALS 30 32 27 30 24
VRIO Analysis of Beekeeper Entering the Airline Industry Core Competency Valuable Rare Inimitable Organized to Exploit Aviation Technology √ √ √ x Compliance with GDRP √ √ √ x Geographic Location √ √ x x Sales and Engineering √ √ x x Software Platform √ √
Recommendation Expand into European Airline Industry • Unpenentrated market • Extreme growth potential
Agenda Situation Analysis Key Issues Alternatives Recommendation Financial Overview Implementation Plan
General Assumptions Revenues are still only covering 65% of company costs Retail, hospitality, and manufacturing industries still make up 80% of company revenues Other industries serviced continue to make up the remaining 20% of revenues Airline industry includes airports and airline companies
Assumptions Airline industry is a $1 B industry The Information Technology budget in the airline industry is 20% of the industry’s value Want to capture 5% of IT budget in form of revenue generated
Pricing Model 2019 Airline Industry Information Technology Our Avaliable Portion € 1, 000, 000. 00 € 200, 000. 00 € 10, 000. 00 € Airline 125, 000. 00 € Airports 58, 333. 33 € Total Revenue 183, 333. 33 Yearly (2020) Month (2020) € Charge Airlines 300, 000. 00 € 25, 000. 00 € Charge Airports 350, 000. 00 € 29, 166. 67 2020 € 3, 000. 00 € 7, 000. 00 € 10, 000. 00
Agenda Situation Analysis Key Issues Alternatives Recommendation Financial Overview Implementation Plan
Implementation Plan Pilot (2019) • Target 2 airports and 5 airlines • Demos and sponsorships at industry events • Prospect and sign new business • Implement customer surveys • For existing customers: more profitable contracts Roll-out (2020) • Target 20 airports and 10 airlines • Implement most requested features • Close North American sales office • Reorganize to Europe • For existing customers: maintain current customer base
Conclusion • Creating a sustainable competitive advantage Issue • Expand to the European airline industry untapped market with tremendous growth potential Solution
- Slides: 25