Taking The Unicorn to America Jakayla Michel, 2nd

Transcript:Taking The Unicorn to America Jakayla Michel, 2nd:
Taking The Unicorn to America Jakayla Michel, 2nd Year Master of Business Management (MBA) Student June 2019 Virginia, USA Haskayne Consulting: Adam Schwarz, Mahwash Waqar, Gibson Yin, Graham Toombs How does On Your Own (OYO) leverage its technology and artificial intelligence algorithms to reach profitability? Your explosive growth is a direct result of your proprietary software and this needs to be the main focus of your business model moving forward. 2 On Your Own is a technology company that got its start in hospitality but has potential to grow globally. Executive Summary 3 OYO needs to leverage it’s proprietary technology and algorithms to reach new markets and ultimately profitability. 4 OYO’s Core Competency is technology and they need to leverage this in new markets Profitability can only be achieved through the technology and algorithm. Background 5 Solutions 6 Searching For A New Career Path Mahwash Waqar 7 Tech Hospitality Industry 8 Technology has changed the dynamics for hospitality industry and granted potential to expand and merge beyond hospitality borders Critical Success Factors 9 Finding a way to harness the driving factors OYO, USA 10 What is the best way to enter the US market and adjust the business model for long-term sustainability? Franchising Model 11 OYO Offers Expertise and collects 10% of sales revenue and 20% of incremental revenue OYO pays money on a per room basis to flip the room, revenue growth promised OYO, US: Critical Look 12 Building on growth areas in the next wave of success for OYO The Target Audience 13 Expanding and increasing the business footprint based on the unique selling proposition: technology and service Alternatives 14 Increase in current service offerings, pricing, licensing the technology in the hospitality and other industries, increasing branding efforts OYO needs to leverage it’s proprietary technology and algorithms to reach new markets and ultimately profitability. 15 OYO’s Core Competency is technology and they need to leverage this in new markets Profitability can only be achieved through the technology and algorithm. Recommendation 16 A holistic approach Is OYO a Good Career Fit? Gibson yin 17 Cost Assumptions Marketing: $ 50 million/yr Create tiered Pricing System: $5 million/yr Licensing Algorithm – Business Development: $10 million/yr 18 $65 million per year additional investment Model Assumptions # of Hotels: 50 rooms $50/room 90% occupancy Minimum Guaranteed Revenue $12.5/room 50% occupancy 19 5 Year Forecast 20 Positive Cashflow by Year 2021 Target Positive cashflow