Can coworking company WeWork transition from startup to established industry player?
Can coworking company WeWork transition from startup to established industry player?
In February 2018 New York-based coworking company WeWork was valued at approximately $20 billion, making it the fourth-most-valuable start-up in the U.S., behind only Uber, Airbnb, and SpaceX. WeWork had experienced explosive growth since its 2010 founding, however it was revealed, during a private bond offering in mid-2018, that the company had posted a net loss for 2017 of $884 million. WeWork's founders insisted that the company's reliance on innovative technology—along with its mission to "create a world where people make a life, not just a living"— would secure its future success. This case outlines WeWork's business model and growth strategy and asks students to consider whether its market position is unique and defensible—and whether or not its valuation is overstated.
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