Task Rabbit Strategic Analysis (B_AD 4013)

8/13/2019 Task Rabbit Strategic Analysis (B_AD 4013)

1/19

December 2013

B-AD 4013.001

Sean Kelley (Team Captain)

[email protected]!

"rice #allin

Ko!y $oac%

S%ao &an'

Your to-dos, done.


2/19

Your to-dos, done.

2


3/19


4/19

Your to-dos, done.

4

#ebrary 2008>pportnity$eco'nition

September 2008RunMyErrand Launch

200?=1.8 million See!#n!

April 2010ame C%an'e Ta+$abbit

ay 2011= million Serie+ A

#n!

ly 2011Ta+$abbit App

December 2011=1.8 million Serie+ B

#n!

2011 - 2013#oc+ on +calin' anepan+ion


5/19

To!ay, Ta+$abbit contine+ to epan! t%eir +erice+ /it%in t%e Enite!

State+. it% operation+ locate! in Bo+ton, e/ &or City, S# Bay Area, an!

+i ot%er !en+ely poplate! metropolitan location+, t%ey contine to connect

people /it% $abbit+, t%eir inten!e! +trate'y.

Products/Services:

Ta+$abbit tili:e+ +martp%one application+ an! internet /eb+ite+ to connect

+b+criber+ to $abbit+. T%e application an! tili:ation o t%e /eb+ite i+ ree

to re'i+tere! member+.

Value Proposition

T%ere are oer 313 million people liin' /it%in t%e Enite! State+ o America,

accor!in' to United States Census Bureau.3T%e amont o time people %ae

eac% !ay contine+ to !ecrea+e a+ more American+ !eote time ot+i!e t%eir

%ome to /or. Ta+$abbit proi!e+ a peace o min! t%at one*+ ta++ /ill be

complete! in a +ae, 7ic, an! eectie manner.

Your to-dos, done.


6/19

Si'niicant ale i+ create! t%ro'% t%e Ta+$abbit b+ine++ mo!el. Any

rabbit can bi! on t%e ta+ an! typically t%e lo/e+t bi!!er 'et+ t%e ta+

a++i'nment. T%i+ platorm internally create+ a lo/ co+t +trctre /it%ot

%ain' to p%y+ically ct co+t+5 at t%e corporate leel. Since t%e company

'enerate+ reene +in' a olmetric-ee ba+e! +trctre t%at increa+e+

/it% t%e re7ency o ta++ perorme!, employee payment +c%eme+ are abilt in mec%ani+m an! !o not rai+e ta+ price+ +i'niicantly. An important

payment eatre allo/+ payment proce++ only ater +cce++l completion o

t%e ta+, eliminatin' !ea!/ei'%t lo++ 'enerate! by aile! ta+ connection+.

Psychological Benefits:

Sb+criber (payin' c+tomer)

"eace o min!

$ea++rance ta++ are bein' perorme! eectiely

Ta+$abbit (employee)

$e!ce! aniety o income +tream

$e!ce! +tre++ leel+

#eelin' o +ecrity

ndustry !nalysis

Your to-dos, done.

F


7/19

Operating ndustry

Ta+$abbit operate+ a+ a noel company. T%e in!+try t%at ali'n+ mo+t to

t%eir +erice+ i+ t%e >ice Stain' an! Temp A'encie+ in!+try, /%ic% i+ a

=12F.? billion in!+try annally. Speciically, Ta+$abbit /ill operate /it%in

t%e >t%er Stain'5 +e'ment /%ic% accont+ or 146 o t%e in!+try or

=1.F4 billion annally. T%i+ in!+try %a+ a ery %i'% !e'ree o

ra'mentation, /%ere t%e top or companie+ accont or le++ t%an 136 o

t%e maret +%are.4

$ecently, t%i+ in!+try %a+ +een a lar'e !e'ree o mer'er an! ac7i+ition+

occrrin'. T%ere i+ an epectation t%at t%e amont o irm+ in t%i+ in!+try i+

epecte! to 'ro/ a+ t%e economy contine+ to +er, an! employee+ +ee

a!!itional (or ancillary) employment.

"emand Conditions:

A+ mentione! beore, Ta+$abbit i+ maretin' t%ro'% +ocial me!ia

net/or+ to connect ta++ /it% people. A+ t%e nmber o nemploye!

in!ii!al+ contine+ to ri+, an! a+ American cltre contine+ to place an

eer increa+in' importance on /or lie+tyle, ta++ /ill 'o n!one. T%e >ice

Stain' an! Temp A'encie+ in!+try i+ in t%e matre p%a+e o it+ lie cycle,

in!icatin' a leelin' o o t%e oerall !eman!. o/eer, t%ere i+ a!e7ate

!ata to anticipate an increa+e in t%e !eman! or $abbit+ a+ t%e American

/ororce +tay+ b+y.

Trends:

Cultural PreferenceG T%e rate at /%ic% American+ are continin' to /or

into t%eir later year+ o t%eir lie in!icate+ an oerall preerence to/ar!+

/orin'. Deman! or $abbit+ /ill increa+e a+ people remain b+y.Technology change T%e eponential increa+e in tec%nolo'y /ill allo/ or

ea+ier, more conenient +e+ o it. T%ereore, in!ii!al+ /ill become more

acc+tome! to +in' Ta+$abbit*+ (an! ot%er !i'itally-broere! +erice+) ia

+martp%one application+ or /eb+ite platorm+.

Your to-dos, done.


8/19

Since t%e !i'itally-broere!

+erice in!+try i+ relatiely

ne/, competition i+

ra'mente!.

Porters 5 forces

Suppliers inimal t%reat

#ew $ntrants i'% t%reat

Substitutes i'% T%reat

Customers o!erate T%reat

%ivalry: o/ !"ergent

industry

T%e 'eneral enironment i+ ra'mente!, an! t%+ potentially receptie to a

ir+t moer a!anta'e +cenario. Tar'et maret+ or con+mer+ are oriente!

into rban area+ !e to t%e imperect natre o inormation or c+tomer+.

Con+oli!ation i+ a po++ible +orce or a temporary competitie a!anta'e or

a ir+t moer a+ !i'itally-broere! +erice+ !eelop into t%e pro!ct 'ro/t%

cycle.

%ile "orter*+ orce+ are an important ey or analy:in' t%e irm

enironment, t%e Strctre Con!ct "erormance mo!el al+o illminate+

in+i'%tl inormation. T%e ba+ic c%aracteri+tic+ o t%e in!+try incl!e

potential %i'% 'ro/t% rate, lar'e con+mer ba+e+, lac o nioni:ation,

ambi'ity re'ar!in' +ea+onality o +erice+, an! %i'% re7ency o byer+

Your to-dos, done.

8


9/19

(ltimately maret +%are). it% t%e+e ba+ic c%aracteri+tic+ in min!, /e can

no/ loo into t%e +trctre, con!ct an! perormance it+el ecl!in'

'oernment policy actor+ /%ic% are eo'eno+. >erall t%e in!+try %a+

potential or lcratie retrn+ on ine+tment an! potential or 'ro/t%.

Structure:T%e +trctre o t%e in!+try i+ %i'%ly competitie, 'ien

t%at t%i+ i+ a non-con+oli!ate! an! relatiely ne/ in!+try. T%e barrier+

or entry to ne/ irm+ are lo/, an! are only repre+ente! by co+t o

+tartp an! maretin'. Hertical inte'ration i+ not an applicable actiity

at t%i+ time or companie+ competin' in t%e in!+try bt /ill liely

become an opportnity or irm+ a+ t%e in!+try matre+ an!

!ier+iication +trate'ie+ become more apparent.

Conduct:T%e con!ct in t%e in!+try i+ ery a!erti+in' inten+ie

/it% %i'% oc+ on leibility /it% re'ar!+ to +erice pricin' be%aior.

Since t%ere are e/ le'al barrier+, pro!ct an! +erice c%oice i+

etremely arie!. er'er+ an! ac7i+ition+ are an imminent actiity in

t%e in!+try a+ /ell, an! t%e+e be%aior+ are to be epecte! a+ t%e

oerall con+mer ba+e 'ro/+ an! !i'ital-+erice broerin' practice+

become more main+tream. Anot%er important eatre i+ t%at t%ere i+

little to no epre++e! or implie! coll+ion occrrin' bet/een

competitor+.

Performance: "ro!ct price i+ con+mer !etermine! an! +b;ect to

maret !eman! an! +pply, t%ereore t%e pro!ction eiciency o

irm+ i+ %eaily reliant on maret epo+re an! /orer ability. "roit

'eneration i+ !rien +trictly by t%e +%eer nmber o +erice+ t%at are

contracte! an! complete! an! oer%ea! co+t+ are mo+tly acconte!

or t%ro'% t%e in!epen!ently contracte! employee+ in+tea! o t%e

irm. #irm perormance i+ %eaily correlate! /it% con+mer !eman! a+

/ell a+ !i+po+able income leel+. T%ereore economic actor+

+i'niicantly ot/ei'% policy ri+.

Your to-dos, done.

?


10/19

T%e V%O a++e++ment o Ta+$abbit an! it+ b+ine++ mo!el yiel!

+trai'%tor/ar! re+lt+.

1. #alua$le T%e +erice i+ temporarily ni7eI t%+ alable

2. %arity T%e b+ine++ mo!el i+ temporarily rare, bt +b;ect to

+b+titte+

3. &"ita$ility $elatiely ea+y to imitate

4. >r'ani:ation Stron' or'ani:ation ei+t+ an! i+ eploitable

Temporary Competitie a!anta'e i+ po++ibleI ++taine! competitie

a!anta'e+ /ill ari+e t%ro'% e7ity !eelopment an! lo/-co+t +trctre+ a+

/ell a+ eiciency improement+

Performance !ppraisal

Since Ta+$abbit i+ a priate company, t%ere i+ ery little inancial !ata t%at

can be on!I %o/eer, !e to t%e irm*+ poplarity, t%ere i+ inormation

abot ario+ ine+tment+ t%at +eeral entre n!+ %ae pt into

Ta+$abbit. Belo/ i+ a timeline o t%e irm*+ ine+tment+ oer t%e year+.

Your to-dos, done.

10


11/19

Competitors:Amon' Ta+$abbit*+ clo+e+t competitor+, Ta+$abbit %a+

been t%e mo+t +cce++l /%en it come+ to rai+in' money. Beyon! ;+t t%e

money, Ta+$abbit al+o %a+ t%e mo+t +erice proi!er+. Belo/ are +ome

compari+on+ amon'+t t%e ario+ competitor+ in t%e in!+try.

Tas&%abbit Chore'art (e)o*oo& )ee&atoo

&ear #on!e! 2008 2012 200? 2011

Your to-dos, done.

11


12/19

J o Serice

"roi!er+

1,000 LA ,000 3,000

#n!in' =3. illion LA "riately

#n!e!

LA

#rom t%e inormation aboe it i+ clear t%at Ta+$abbit i+ lea!in' t%e /ay in

t%e !i'itally connecte! +erice maret. Ta+$abbit /a+ t%e ir+t o it+

competitor+ to be on!e! an! %a+ been able to brin' on ine+tor+ to %elp

boo+t company 'ro/t%. Bace! by oer t%irteen ine+tor+, an! %ain' t%e

lar'e+t nmber o +erice proi!er+, Ta+$abbit i+ n!obte!ly an in!+try

lea!er in t%e !i'itally broere! +erice maret. #rt%ermore, alt%o'%

+peciic i're+ are nno/n, Ta+$abbit %a+ been able to ac%iee +i'niicant

'ro/t% accor!in' to mltiple pblication+ (i.e. #a+tCompany,


13/19

+ey Strategic ssues

T%e bi''e+t i++e or Ta+$abbit i+ t%eir +lo/ c+tomer a!option rate. T%eprimary ca+e o t%i+ i++e i+ t%at many people !on*t no/ abot t%e

+erice+ Ta+$abbit oer+. Ta+$abbit %a+ +lo/ly been 'ro/in' it+ +erice

area+ in !ierent 'eo'rap%ical location+. T%e irm no/ %a+ $abbit+ (ta+-

!oer+) in ei'%teen citie+, incl!in' one international city. T%e irm plan+ to

epan! into ot%er citie+ in t%e near tre. Ta+$abbit*+ bi''e+t ob+tacle /ill

be !riin' a!option to t%eir +erice in t%e+e lar'e citie+. T%i+ /ill be ey to

+cce++ in t%eir 'ro/t% plan+. Ta+$abbit*+ or'ani:ational re+trctrin', in

/%ic% t%ey lai! o t/enty percent o t%eir /ororce i+ a !irect con+e7ence

o t%e+e mi++e! pro;ection+ ca+e! by +lo/ a!option.

any pblication+ cite! t%e rea+on or Ta+$abbit*+ mi++e! i're+ to be

t%eir broa! maret reac%. A lot o analy+t+ beliee t%at t%e tar'et maret or

Ta+$abbit i+ too lar'e an! t%at t%ey tar'et too broa! o a ran'e o +erice+.

A+ a re+lt Ta+$abbit %a+ be'n to +%it it+ oc+ on b+ine++e+ an! ma!e

an eort to proi!e a +earc% platorm or temporary +erice+. T%i+ c%an'e inoc+ mi'%t be beca+e o t%e analy+t*+ pre!iction+ t%at Ta+$abbit*+ initial

tar'et maret /a+ too broa! to +cce++lly captre. Alon' /it% bil!in' a

better bran! ima'e, Ta+$abbit m+t al+o /or on bil!in' tr+t bet/een

t%e $abbit+ an! t%e c+tomer+. T%e !i'itally-broere! +erice in!+try*+ ey

+cce++ actor i+ %eaily ba+e! on bil!in' tr+t /it%in t%eir c+tomer+.

Ama:on, one o t%e bi''e+t online +ale+ company in t%e /orl! %a+ +pent an

enormo+ amont o time an! money on bil!in' tr+t /it% t%eir c+tomer+.

A+ a re+lt, t%ey are no/ one o t%e mo+t tr+te! companie+ in t%e /orl!,

an! t%eir +ale+ are a beneactor o it.

T%e in!+try*+ %i+tory o +cam+ an! ba! !eal+ %a+ ma!e Ta+$abbit*+ role in

bil!in' tr+t /it% t%eir c+tomer+ een more !iiclt. T%e irm %a+ ma!e

Your to-dos, done.

13


14/19

eort+ to a!!re++ t%i+ i++e o tr+t by con!ctin' bac'ron! c%ec+ on all

$abbit+, an! ma!e t%i+ point clear to t%eir c+tomer+. Accor!in' to t%e "e/

$e+earc% Center, a +rey con!cte! oer +eeral year+ a+e! 2000

re+pon!ent+ i people in 'eneral can be tr+te!. >er 06 o t%e in!ii!al+

interie/e! rom re+pon!e! t%at &o can*t be too carel5. T%i+ lac o tr+t

i+ one o t%e ey in+ti'ator+ or /%at or analy+e+ %a+ !etermine! to be t%emain problem(+).

Apparently, t%ere ;+t %a+n*t been eno'% !eman! or !i'itally broere!,

inormal employment to +pport a company bil!in' +c% a maretplace5 G

Business/ee*.co", regarding Tas*%a$$it

Ta+$abbit proi!e+ a mean+ to an en! in t%e +en+e t%at it not only create+

in!epen!ently contracte! ;ob+, bt al+o enable+ increa+e! pro!ctiity or

in!ii!al+ /%o can aor! to ot+orce5 t%eir labor. T%e problem or

Ta+$abbit i+ in many /ay+ it+ opportnity a+ /ell. T%e potential or proit i+

lar'e, bt +ince t%i+ i+ not a main+tream practice people may not be a+

/illin' to a!opt it.

Ta+$abbit re7ire+ +i'niicant inra+trctre to operate

App aret

Tec%nolo'ically incline! +er ba+e

Tar'ete! net/or maretin' an! ee!bac inte'ration

T%e main i++e+ or Ta+$abbit are %o/ can it become a reco'ni:e! an!

tr+te! irm in t%i+ emer'in' maret an! %o/ can t%e company leera'e t%i+

tr+t into a temporary or ++taine! competitie a!anta'e.

Your to-dos, done.

14


15/19

An important i++e t%at t%e company m+t reali:e an! incorporate into t%eir

+trate'y ormlation i+ t%e bi' 7e+tion t%at eeryone i+ a+in' t%em+ele+

%o are t%e Ta+ $abbit+ an! /%y +%ol! < tr+t t%emN5

Ta+$abbit %a+ attempte! to an+/er t%e 7e+tion o employee reptation

t%ro'% inten+ie +er 'enerate! (ta+ po+ter) ee!bac +y+tem+ a+ /ell a+

a proper ettin' proce++ or 7aliication te+t. ei'%bor+ %elpin' ei'%bor+5

i+ one o t%eir core ale+, an! i+ part o t%e irm*+ t%eory abot %o/ t%ey

/ill create a competitie a!anta'e. T%e problem t%ey ace %o/eer, i+ t%at

in to!ay*+ +ociety, a per+on*+ nei'%bor+ may not nece++arily %ae t%e be+t

intention+ in t%e real /orl!. "eople are natrally +eptical o online

interaction+, an! it i+ only recently t%at companie+ are in!in' +cce++ in

online net/orin' (9-%armony, crai'+li+t, etc.). So %o/ can Ta+$abbit

net/orin' c%an'e in or!er to become more main+treamN aretin' i+

obio+ly a nece++ity, an! /it%ot it c+tomer 'ro/t% /ill be +tile!. it%

t%at in min!, or analy+e+ %a+ le! + to +eeral !ierent +trate'ie+ t%at

col! be implemente! in or!er to leera'e tr+t into a +cce++l mec%ani+m

or proit creation.

Option ,:#oc+e! 'ro/t% +trate'y tili:in' 'eo'rap%ic !ier+iication

Your to-dos, done.

1


16/19

Tar'ete! etropolitan epan+ion to ac7ire more client+ an! epan!

!i'ital broer in!+try.


17/19

a 'ro/t% cycle. T%e mo+t lo'ical c%oice or t%e company i+ to en'a'e in an

inten+ie maretin' campai'n in or!er to +prea! /or! abot t%e ni7e

+erice+ t%at t%ey oer. it%ot an eectie a!erti+in' campai'n reene

'ro/t% /ill become +ta'nant a+ early a!opter+ o t%e +erice+ /ill not be

+icient to !rie company epan+ion.

Bran! e7ity i+ t%e !riin' orce or /or! o mot% maretin' a+ /ell a+

con+mer tr+t. Strate'ic alliance+ or +mall irm+ can not only cataly:e

epo+re to tre c+tomer+, bt al+o increa+e tr+t an! a/arene++ oerall

abot t%e irm. Ta+$abbit %a+ to react 7icly an! !ierentiate it+el rom

it+ competitor+ in t%e !i'ital broera'e maret or +erice+ ot%er/i+e

reene an! 'ro/t% po++ibilitie+ /ill be lo+t.


18/19

or+ Cite!

Your to-dos, done.

18


19/19

1Bil!in' a B+ine++ on B+y Sc%e!le+ an! ain' 9rran!+ "ay. !ntre)reneur. eb. 01 o.

2013. $etriee! rom %ttpLL///.entreprener.comLarticleL220

2Oconomy San #ranci+co.9cono"y %SS. eb. 01 o. 2013. $etriee! rom

%ttpLL///.conomy.comL+an-ranci+coL2011L10L12Lbo-7m-:enpri+e-bay-area-bi:tec%-ne/+-by-

t%e-nmber+L

3

"oplation Cloc. Po)ulation Cloc*. eb. 01 o. 2013. $etriee! rom%ttpLL///.cen++.'oLpopclocL

4

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Task Rabbit Strategic Analysis (B_AD 4013)

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