Target Market for WeWork
The target market for WeWork is small to medium-sized businesses, companies looking for a flexible and collaborative work environment. WeWork provides co-working facilities and business services to freelancers, independent professionals, and entrepreneurs.
Business Strategy of WeWork
WeWork works on a "space-as-a-service" membership model, providing flexible access to spaces, an inclusive culture, and an inspired community. By establishing a strong, global presence, WeWork has attracted a broad customer base and diversified revenue.
Evaluation of WeWork
Critics think WeWork can’t support its $47 billion valuation. Backed by SoftBank, WeWork specializes in rent arbitrage, leasing and developing properties at one price and renting them out much higher. WeWork’s recent funding has given the company resources to expand quickly without worrying about fundamentals. Similar public companies trade at much lower sales multiples than WeWork.