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
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01
Is OYO the right choice for you? Presenting to: Jakayla Michel, MBA participant
Presented by: Nanyang consulting 2020<br>
02
Agenda 1
2
3
4
5
6 Profile
Concerns
Analysis
Decision
Pitch plan
Alternative choices 2<br>
03
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<br>
04
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?<br>
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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<br>
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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<br>
07
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<br>
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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.<br>
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Business model outlook: As an emerging-market unicorn, OYO is providing tech-driven solutions to both hotels and end customers Bringing a clean bed and environment to all travels at a budget price Mission Business model Capital-light franchise model enables scalability
Partnerships with local hotel owners and some higher-quality
Self-own properties/hotels OYO uses data science and AI algorithm to disrupt the traditional budget hotel industry, and provide solutions to both hotels and travelers. 9 Solutions Providing tech-driven solution (AI algorithm) for making economy hotels discoverable and bookable
Increase visibility and occupancy rate of low-end hotels to attract travelers;
Provide travelers budget price with standard service<br>
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US market outlook: Considering following analysis, US market is ripe for OYO to exploit Rundown motels on the country requiring visibility;
Upcoming customers in US needing quality hotels to stay;
Pricing for OYO is cheaper compared to budget franchises in US Why US? Prefer travel & stay via roads compared to flight travel;
Social-driven; Willing to listen to the opinions from friends
Data intimacy (social media, mobile apps); Reliance on reviews, recommendations;
More price conscious than Gen X and baby boomers With the tech-savvy, price conscious millennials on the rise in the US, OYO is on the right spot to booming in this market. 10 Millennial trends in US<br>
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Final Decision and Criteria used for analysis and final decision to pursue roles 11 Financial analysis - sustainability and profitability will be met in 5 years
Franchise Model – target motels, outskirts of cities
Customer centricity – key to brand expansion Yes, OYO! Territorial Operations Leader Initiate new processes
Monitor, analyze, improve efficiency
Broad range of job functions
Challenge existing processes
Ensure success of hotel functions<br>
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Pitch Plan: Roadmap for implementation of objectives in the role of Territory Operations Leader 12 Pitch plan will address the current challenges of OYO - drive occupancy rates and growth, and meet professional development needs<br>
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Plan 1: Customer Centric marketing 13 Attract tech savvy millennials
Growth of franchise pool
Technology integration – chatbots
Show time (TV) for renovation What Technological capabilities support – ‘chic style hotels’ Why<br>
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Plan 1: Customer Centric marketing 14 Technology Operations and Marketing<br>
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Plan 1: Customer Centric marketing 15 Activity streams for implementation of 2 new objectives will lead to increase in occupancy rates<br>
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Plan 2: Partnerships and Collaborations 16 Requirement for effective partnerships
Airlines and car Rental agencies display potential What OYO has a promise of 100% occupancy Why<br>
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17 Airlines Car rentals Plan 2: Partnerships and Collaborations<br>
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18 Activity streams for implementation of 2 new objectives will lead to increase in occupancy rates Plan 2: Partnerships and Collaborations<br>
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19 Suitable human resources are required for successful implementation of pitch plan Plan 3: Build a capable team<br>
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20 Timeline for growth as Territory Operations Leader Territory operations Leader Regional Operations Leader Country Operations Leader Country Investment Manager Professional development and outlook based on applied role will lead to Senior positions in the long term 3 years 5- 7 years<br>
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21 Alternative Job Prospects in the event of unsuccessful application Job prospects Hospitality Travel Business Development Manager Chief Operations Manager (Peak Hospitality) Key Accounts Manager (Trivago, Expedia) E-commerce
Manage Operations
Customer Experience tracking Drive Sales
End-to-end Business development KPI Analysis
Training and Development of staff Suitable Service Industry job prospects based on interests and profile, will lead to holistic and professional successful development<br>
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THANK YOU FOR YOUR ATTENTION We now welcome any questions you may have. 22<br>