Is OYO the right choice for you? Presenting to:

Transcript:Is OYO the right choice for you? Presenting to::
Is OYO the right choice for you? Presenting to: Jakayla Michel, MBA participant Presented by: Nanyang consulting 2020 Agenda 1 2 3 4 5 6 Profile Concerns Analysis Decision Pitch plan Alternative choices 2 Your profile: As an MBA student with investment bank experience, you are keen for a career shift Professional experience Four years in investment bank sector; MBA candidate Key capabilities: Financial analysis; Problem-solving skills; Strategic mindset Desire Pivot to a challenging and successful industry; Gain more visibility in the role; Autonomy in work 3 Strategic capability, problem solving and management knowledge base makes you a suitable candidate for Operations Concerns : Skepticism regarding the business model and success of OYO in US, makes it a challenging career path Challenges Sustainable business model? Challenges for expansion into US? Viability of franchise model? Question of profitability? Criticism Lack of backpacking/ cheap travel culture Strong competition – Airbnb, budget hotels Hotels have basic standards already 4 Will the development of OYO be translated into your own career growth? 5 One of the largest hotel chains in the world Financially viable – adequate funding $ 10 billion valuation Growth across the globe Less cost intensive franchise business model Positive customer service Social proof Technologically advanced – ORBIS and OAM High operating expenditure – renovation and skill Not profitable yet Risks with franchise model Strengths Weaknesses Internal Analysis: OYO exhibits a strong franchise model that has worked in the past, but faces skepticism 6 Online adoption rates Customer trust – create more awareness Increasing trend for middle-class business and vacation High growth rate in US hotel market Partnerships and collaborations Potential Lawsuit – Ncrypted Weak publicity – criticism of founder US overheads are different from existing markets Opportunities Threats External Analysis: OYO operates in a competitive environment with opportunities for expansion Value Analysis: OYO operates in a competitive environment with opportunities for expansion 7 High Low Relativity Brand value Pricing Customer Service Technology and Convenience Loyalty Programs High- end hotels Airbnb Motels Oyo Rooms Budget hotels OYO rooms displays potential for growth customer service and loyalty programs Financial outlook: OYO endeavors in reducing loss and will make the business model more profitable and sustainable. 8 Despite the loss presented in financial statements in 2019, improvement in the business model and economics of scale will enable OYO to make profit in next 5 years. Business model outlook: As an emerging-market unicorn, OYO is