Recommended
More Related Content
What's hot
What's hot (20)
Similar to Oyo - Greiner growth model
Similar to Oyo - Greiner growth model (20)
More from Athulya Nair
Recently uploaded
Recently uploaded (20)
Oyo - Greiner growth model
- 1. OYO Rooms #AurKyaChahiye Athulya Nair D-08 Bhawana D-10 Priyanka NA D-45 Saloni Gupta D-70 Shweta Rehal D-59 Sumiran Johri D-63
- 2. INTRODUCTION WORLD’S FASTEST GROWING HOTEL CHAIN MORE DESTINATIONS. MORE EASE. MORE AFFORDABLE STARTED IN 2013 Present. in 800+ cities/ 43000+ Exclusive Hotels/ 1.2 M+ Exclusive Rooms GLOBAL PRESENCE India,China,Indonesia,UAE,Nepal,Mexico,Phillipines,US Vietnam,Sri Lanka etc. KEY PRODUCTS OYO Townhouse/ OYO Silverkey / OYO Home
- 3. 2011 Ritesh Agarwal took the plunge with his first start-up ORAVEL this year OYO received its first Series A funding 2014 in August 2013 Agarwal was selected for Theil Fellowship which gave him funding of $100,000 OYO received funding of a whooping amount $25 Million 2015 in March 2015 in July OYO bagged $100 million in Series C round of funding from Softbank 2016 in January The hotel chain hit the 1 million check-ins mark and also launched in Malaysia 2017 Continuing its expansion, OYO launched a new business in Nepal 2018 Established operation in UK, Dubai, China, Singapore & Indonesia. Became a Unicorn in September. 2019 It has more than 330,000 rooms in 500 cities globally OYO App was launched followed by massive expansion 2015 in April 2020 OYO is trying to cope up with the losses made during Pandemic by announcing Furloughs and 25% pay cut for employees Timeline
- 5. Growth through Creativity Growth through Direction Growth through Delegation • Problem : Affordable, liveable temporary locations • 2012 : Launched – “Oravel Stays • 2013 : Oyo (On your Own) • Highly Technology driven • Great working place for youngsters • Brand New experience for the Hotel Partners • Functional organizational structure • Separate Departments – Operations, Marketing, Finance, HR, Strategy, Tech, product etc • The Smart incentive system and Reward management policies • “OYOpreneurs” – Managers and Employees • Decentralized organization structure • Smart Rewards to motivate employees • OYO philosophy - celebrating the entrepreneurial mindset of all OYOpreneurs • The Autonomy of Decision Making • 3rd largest chain the world Leadership Crisis • Technically or entrepreneurially oriented • Communications – informal and frequent • Growth of OYO was explosive. Control Crisis • Employees - Reimbursement of Fake Bills of Hotel Stays • Partners - Malpractices by Hotel Owners • Customers- Illegal Practices in Hotel Rooms Autonomy Crisis • Lower level employee – restricted by a hierarchy • Solution is to move toward more delegation
- 6. Growth through Coordination Growth through Collaboration Growth through Alliances • A formal system for reporting and greater coordination • The Cohesive Revenue model • Strict guidelines coordinated to Hotel Partners • Employee welfare schemes and smart incentive schemes along with ESOPs. • Diversified Journey - Oyo Products & Services • OYO acquired many established hotel chains and other strategic companies globally • OYO helping Tier 2 Cities in renovation making them Tourism Friendly • Alliances with over 5000+ brands Eg., PayTM, Myntra, Ola, ZoomCar, Dineout etc • OYO become 3rd largest hotel chain in the world. • Acquisition and Operation Teams even in Tier 2 and Tier 3 cities. • Renovated hotels; Wi-fi Facilities; • Global expansion – collaboration with different head quarters Red Tape Crisis • A Rift between OYO and its Hotel Partners. • Strict guidelines and stringent rating system for Hotel Partners. • Heavy Penalties on Hotel Partners. Growth Crisis • Heavy workload due to huge business line up. • Challenge of retaining hotel partners • Struggle in maintaining band value in eyes of customers • Challenge of a new collaboration with hotel partners with the excessive competition. Identity Crisis • Unstable growth model • Psychological saturation of employees • Heavy pressure for innovative solutions • Cutthroat competition • COVID – 19 :(
- 7. Strengths Weaknesses Opportunities Threats • Locational advantages • Geographic presence • Online presence • High product quality • Standardization • Ever growing network • Subsidizing Hotel Stays • Workplace diversity • IT infrastructure • Inability to understand customers’ needs and expectations • poor service & customer service • Insufficient budget & cash • high employee turnover • Co-branding strategy • R & D • Tight margins • Organizational culture • Exponential growth • Changing customer standard of living • Business travelers • New technologies • E-commerce and social media • New market segment • Global Market • Regulatory framework & regulations • Growing concerns about safety • Competitors • Economic conditions • Rise in inflation • Cultural intelligence
- 11. Blinded Dissolution Crisis Faulty Action Inaction • Missing Quality Inspection • Poor CRM system • Poor practices with partner hotels • Fraud • Miscommunication between department • Unwillingness to address the visible issues • Downgrading - intake of quality managers and replacing them with freshers to cut costs • Aggressive acquisitions and mergers • Rapid expansion • Cutting 5% of its 12000 employees in China • 12% of its 10000 employees in India • Plans in shutting over 1200 chains to recover losses Not yet! Weitzel and Jonsson Model
- 12. References • https://www.oyorooms.com • https://hbr.org/1998/05/evolution-and-revolution-as-organizations-grow • https://www.entrepreneur.com/article/326623 • https://inc42.com/features/from-a-teen-founder-to-controversies-and- expansion-how-did-oyo-start/ • https://yourstory.com/2015/12/awesome-startup-employee-shrey-gupta-oyo- rooms-optimus-prime Questions ?