Beekeeper Consultancy: Strategy for Sustainable Growth in Hospitality Industry
Warm welcome to Beekeeper board of directors! This consultancy project focuses on addressing critical challenges like low employee motivation and unclear strategy fit. After thorough analysis, the recommendation is to tailor functionalities for the hospitality industry to achieve high scalability and reduce internal complexity. The SWOT analysis highlights strengths in-house knowledge and opportunities in new markets. Issues in the hospitality industry include high absenteeism and turnover rates, as well as low productivity.
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Presentation Transcript
BEEKEEPER This is where we need to bee Nyenrode Business Consultancy Bart van Campenhout Jassu Hermans Asiya Suleimanova Julie Wijmans
Mandate Warm welcome to the board of directors of Beekeeper Presenting a strategy and implementation to tackle the current challenges Beekeeper is dealing with
Agenda Case definition Analysis Alternatives Recommendation Implementation Financials and risks Conclusion
Key question: Go broad or go deep? What is Beekeeper s strategy towards sustainable growth?
Beekeepers critical challenges Low Employee motivation Low Customers retention, high acquisition Increasing internal complexity Unclear fit of strategy and product
Recommendation Go deep in the hospitality industry Go deep in the hospitality industry Tailor Tailor- -made functionalities for hospitality clients made functionalities for hospitality clients High scalability High scalability Reducing Beekeeper s internal complexity Reducing Beekeeper s internal complexity
SWOT Strengths Strengths In-house knowledge on hospitality industry Weaknesses Weaknesses Engineering team cannot handle all customer specific requests First-mover advantage in non-desk hospitality industry No established track record in any industry Low customer loyalty No earnings model Threats Threats GDPR Opportunities Opportunities New market with high growth potential Increasing use of smartphones on the work floor Competition will increase due to new entrants
Issues in the hospitality industry High absenteeism of employees Turnover rates Low productivity of employees High seasonality
Beekeepers current product Peer-to-peer messaging Group messaging functionalities Employee surveys Posts and notifications from managers towards employees
Alternatives introduction Industry broadness 1 2 0 3 Industry depth
Alternatives 1 2 3 Go broad global and non-industry specific Go midway on Beekeeper s three biggest industries Go deep specifically on the hotel industry
1 Go broad broad Focus on any customer and tailor product to their needs Not restrained by the ups and downs in cyclical industries Higher disruption resistance Unclear customer value proposition Increases internal complexity issues
2 Go midway midway Focus on current majority industries (retail, hospitality and manufacturing) Lessens seasonality Increases complexity More revenue sources and maintains majority customers Decreases dependence on one industry Low loyalty
3 Go deep deep on hospitality Reduces internal complexity Increases product market fit of specific product Dominant market position Big potential market Retail and manufacturing customers may leave Getting to know core market to increase efficiencies
Decision metrics Decision is based on the key issues Beekeeper is facing right now Low Employee motivation Employee motivation Low Customers retention Customers retention, high acquisition Increasing internal complexity internal complexity Unclear fit of strategy and product: Beekeeper s DNA Beekeeper s DNA
Alternatives scorecard Broad Broad Midway Midway Deep Deep Employee satisfaction Customer retention Internal complexity relief Fit with Beekeeper DNA
Alternative 3: GO DEEP IN HOSPITALITY INDUSTRY Introducing a Beehive app which is based on gamification features Hotel-feature specific which is tailored for the hotel chain Full-focus on hospitality industry
Hospitality sales and product development focus Sales and product developments strategies should be focused on (mainstream) chains Sales and product developments strategies should be focused on (mainstream) chains - Scalable - Rapid growth - Broad applicable learnings Hotel industry 1st step Hotel industry 1st step Hotel industry - Current level of experience - High number of employees 2nd step Restaurant industry 2nd step Restaurant industry Restaurant - High overlap with hotel industry (hospitality) - High volume of non desk employees - High fluctuation of employees 3d Leisure 3d Leisure Leisure - Hospitality overlap
HOW TO BECOME THE BEST COMMUNITY BUILDING PLATFORM OF THE HOSPITALITY INDUSTRY STARTING WITH HOTEL SECTOR.
HOW TO BECOME THE BEST COMMUNITY BUILDING PLATFORM OF THE HOSPITALITY INDUSTRY STARTING WITH HOTEL SECTOR. TO REALLY GET TO KNOW YOUR CUSTOMER YOU HAVE TO BE WHERE YOU C TO REALLY GET TO KNOW YOUR CUSTOMER YOU HAVE TO BE WHERE YOU CUSTOMER IS AND DO THINGS THAT DO NOT SCALE IS AND DO THINGS THAT DO NOT SCALE USTOMER FOUNDER OF AIRBNB FOUNDER OF AIRBNB
Beehive app Goal: internal community building to decrease high absenteeism and low productivity Goal: internal community building to decrease high absenteeism and low productivity By introducing new gamification based features incorporated in beehive app By introducing new gamification based features incorporated in beehive app Internal public compliment system Efficiency tracking (miles walked/rooms cleaned/customers served) NPS score tracking per shift RAOK (random acts of kindness) score track Creates an effective and Creates an effective and strong community of non strong community of non- - desk employees desk employees Motivating healthy competition amongst shifts
Subscription-based service Freemium model Freemium model Premium model Premium model Gathers behavioral Gathers behavioral data and data and strengthens the strengthens the product product Attracts paid Attracts paid customers customers Features: Features: Features: Features: - Access to limited functionality - Access to all the features $1.70 per account monthly fee 5% discount on groups from 500 employees - Trial model Trial model - One month free trial of a premium model -
FINANCIALS AND RISK
Financials ( in M USD) ( in M USD) Investment Revenues Profits NPV 2019 2019 -1.500 +0.210 -1.290 -1.290 2020 2020 -0.100 +0.300 +0.200 0.180 2021 2021 -0.100 +0.400 +0.300 0.260 2022 2022 -0.100 +0.600 +0.500 0.390 2023 2023 +0.800 +0.800 0.650 Assumptions: Assumptions: 1.5m initial investment in app creation 100k investment per big hotel chain Average of 1500 users per hotel Monthly fee of 1,70$ per user NPV = +190k NPV = +190k PBP = 6 years PBP = 6 years
Risks GDPR Focusing on one industry initially means a cut in revenue Reduces diversification
This is where we need to bee KEY ISSUES SOLUTIONS Low Employee motivation A 3 step approach on tackling Low Customers retention, high hospitality industry acquisition - Start with hotels by introducing a Increasing internal complexity beekeeper s app with gamification Unclear fit of strategy and product features
