“The biggest risk is not taking any risks.” Mark Zuckerburg once said: “The biggest risk in business is not taking any risks.” In an ever-changing world of technology and globalization, it is imperative that a business be willing to adjust and take risks in order to remain competitive. This is the scenario that Beekeeper is currently facing right now as they manage to pivot their startup. Mark Zuckerberg
Beekeeper: From Pivoting Startup to Disrupting Scaleup Good afternoon Executive Management Team of Beekeeper, we are Odette Consulting. My name is Jordan Neposlan… introduce and today we would like to share with you our analysis and unique recommendation for the firm Beekeeper and how this startup can pivot to truly be disruptive in a new industry. ODETTE CONSULTING: Brandon Lalonde, Jacob McCourt, Jordan Neposlan, Sahi Veeraraghavan PRESENTING TO: Executive Management Team of Beekeeper
How should Beekeeper shift their business in the next 12 months? THE CHALLENGE How should Beekeeper shift their business in the next 12 months? This brings us to our consulting team’s position on the issue at hand. Our position within this presentation is to answer the question: “How should Beekeeper shift their business in the next 12 months to remain competitive?”
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 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) SWOT Analysis of Beekeeper
PESTLE Analysis of Beekeeper Brexit -Risks: recessions, rising inflation -Markets are weak -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 P E S T L E
Agenda Situation Analysis Key Issues Alternatives Recommendation Financial Overview Implementation Plan
Key Issues of Beekeeper Current Office Space Organizational Difficulties Engineering teams – misalignment of leadership philosophy Owners’ Changing Roles Engineers sync with management Scaling Silicon Valley style Communication gaps and cross-cultural differences
Key Issues of Beekeeper Future Risks to be Mitigated Technology is changing keeping up the tech trend Market Fluctuations Regulatory to cover customer data 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
North American Hospitality Making a Decision North American Hospitality 5 Global Segments Airlines Europe Risk 3 6 Alignment to Regulatory GDRP 9 Size of Market 5 8 Technical and Industry Complexity 4 Capabilities with Current Resources 1-3 4-6 7-10
Agenda Situation Analysis Key Issues Alternatives Recommendation Financial Overview Implementation Plan
North American Hospitality Making a Decision North American Hospitality 5 Global Segments Airlines Europe Risk 3 6 Alignment to Regulatory GDRP 9 Size of Market 5 8 Technical and Industry Complexity 4 Capabilities with Current Resources TOTALS 23 28 31 1-3 4-6 7-10
Reasoning: Industry Breakdown Financial Services Airline Retail Manufacturing Hospitality Market Size 7 4 8 5 More Non-tech customers 6 Head Office Decision Making in Europe Complexity Growth Potential TOTALS 30 32 27 24 1-3 4-6 7-10
VRIO Analysis of Beekeeper Entering the Airline Industry Core Competency Valuable Rare Inimitable Organized to Exploit Aviation Technology √ x Compliance with GDRP Geographic Location Sales and Engineering Software Platform
Expand into European Airline Industry Recommendation Unpenentrated market Extreme growth potential Expand into European Airline Industry
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 $1B 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 Airline industry is a $1B industry
Pricing Model 2019 2020 Airline € 125,000.00 € 3,000,000.00 Airports € 125,000.00 € 3,000,000.00 Airports € 58,333.33 € 7,000,000.00 Total Revenue € 183,333.33 € 10,000,000.00 Airline Industry € 1,000,000,000.00 Information Technology € 200,000,000.00 Our Avaliable Portion € 10,000,000.00 Yearly (2020) Month (2020) Charge Airlines € 300,000.00 € 25,000.00 Charge Airports € 350,000.00 € 29,166.67
Agenda Situation Analysis Key Issues Alternatives Recommendation Financial Overview Implementation Plan
Implementation Plan Pilot (2019) Roll-out (2020) 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 Issue Solution Creating a sustainable competitive advantage Expand to the European airline industry untapped market with tremendous growth potential Going back to the quote at the beginning, it is imperative for businesses to explore business opportunities and take risks IF these opportunities have the potential to create tremendous company growth. Our solution gives Beekeeper that possibility. We encourage you to hire our consulting team to help roll out this innovative plan. Thank you.