1. This is where we need to “bee” Nyenrode Business Consultancy
Beekeeper
This is where we need to “bee”
Nyenrode Business Consultancy
Bart van Campenhout
Jassu Hermans
Asiya Suleimanova
Julie Wijmans

2. Mandate Warm welcome to the board of directors of Beekeeper
Presenting a strategy and implementation to tackle the current challenges Beekeeper is dealing with

3. Agenda Case definition Analysis Alternatives Recommendation
Implementation
Financials and risks
Conclusion

4. Case definition

5. Key question: Go broad or go deep?
What is Beekeeper’s strategy towards sustainable growth?

6. Beekeeper’s critical challenges
Low Employee motivation
Low Customers retention, high acquisition
Increasing internal complexity
Unclear fit of strategy and product

7. Recommendation Go deep in the hospitality industry
Tailor-made functionalities for hospitality clients
High scalability
Reducing Beekeeper’s internal complexity

8. analysis

9. SWOT Strengths In-house knowledge on hospitality industry
First-mover advantage in non-desk hospitality industry
Weaknesses
Engineering team cannot handle all customer specific requests
No established track record in any industry
Low customer loyalty
No earnings model
Opportunities
New market with high growth potential
Increasing use of smartphones on the work floor
Threats
GDPR
Competition will increase due to new entrants

10. Issues in the hospitality industry
High absenteeism of employees
Turnover rates
Low productivity of employees
High seasonality

11. Beekeeper’s current product
Peer-to-peer messaging
Group messaging functionalities
Employee surveys
Posts and notifications from managers towards employees

12. alternatives

13. Alternatives introduction
Industry broadness
Industry depth 1 2 3

14. 1 2 3 Alternatives Go broad global and non-industry specific
Go midway on Beekeeper’s three biggest industries
Go deep specifically on the hotel industry

15. 1 Go 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

16. 2 Go 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

17. 3 Go 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

18. Decision metrics
Decision is based on the key issues Beekeeper is facing right now
Low Employee motivation
Low Customers retention, high acquisition
Increasing internal complexity
Unclear fit of strategy and product: Beekeeper’s DNA

19. Alternatives scorecard
Broad
Midway
Deep
Employee satisfaction
Customer retention
Internal complexity relief
Fit with Beekeeper DNA

20. Recommendation

21. 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

22. IMPLEMENTATION

23. Hospitality sales and product development focus
Sales and product developments strategies should be focused on (mainstream) chains
Scalable
Rapid growth
Broad applicable learnings
1st step Hotel industry
Current level of experience
High number of employees
2nd step Restaurant industry
High overlap with hotel industry (hospitality)
High volume of non desk employees
High fluctuation of employees
3d Leisure
Hospitality overlap
Hotel industry
Restaurant
Leisure

24. How to become the best community building platform of the Hospitality industry starting with hotel sector.

25. 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 customer is and do things that do not scale’’ Founder of Airbnb

26. Creates an effective and strong community of non-desk employees
Beehive app
Goal: internal community building to decrease high absenteeism and low productivity
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
Motivating healthy competition amongst shifts
Creates an effective and strong community of non-desk employees

27. Subscription-based service
Freemium model
Gathers behavioral data and strengthens the product
Features:
Access to limited functionality
Trial model
One month free trial of a premium model
Premium model
Attracts paid customers
Features:
Access to all the features
$1.70 per account monthly fee
5% discount on groups from 500 employees

28. Financials and risk

29. Financials NPV = +190k PBP = 6 years ( in M USD) 2019 2020 2021 2022
2023
Investment
-1.500
-0.100
Revenues
+0.210
+0.300
+0.400
+0.600
+0.800
Profits
-1.290
+0.200
+0.500
NPV
0.180
0.260
0.390
0.650
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
PBP = 6 years

30. Risks GDPR Focusing on one industry initially means a cut in revenue
Reduces diversification

31. conclusion

32. This is where we need to “bee”
KEY ISSUES
Low Employee motivation
Low Customers retention, high acquisition
Increasing internal complexity
Unclear fit of strategy and product
SOLUTIONS
A 3 step approach on tackling hospitality industry
Start with hotels by introducing a beekeeper’s app with gamification features