Question

Please outline and define the THREE types of PATENTS referenced on our patent process hand out. II. We have studied among other companies, LYFT, PINTEREST and WAYFAIR. In studying them we have compared them across a wide range of "measurable indicators. They include among others growth history, management team and several others. Please list as many as you can and perform an "analysis " of WeWork. We Work represents itself as real estate company "disrupter " in the Office leasing space. They lease space in its sleek, open locations to small, medium and large businesses a like , as well as freelancers and remote workers. The firm more than doubled its revenue to $422 million dollars in the second quarter of 2018. BUT they are not profitable losing $723 million in the first half of 2018 alone. Your task for this question , which represents 50% of your final grade, is to thoroughly analyze the viability of We Work. Are they in fact a disruptive business? If so then why ? If not, why not? Based upon the evaluation criteria that we have used and applied in the past do you think they have a sustainable future? Would you buy their stock when they issued an IPO.

Answer 1

The three types of patents used are namely

• Utility patent
• Provisional patent
• Design patent

The measurable indicators of businesses are net profit, return on capital employed, free cash flow, internal rate of return, market capitalisation, human capital cost, attrition rate, sales turnover.

WeWork is truly viable and disruptive business as this allows various startups and MNC to get leased spaces with customisation and cost savings and effective deployment of manpower by space optimization.

Since the organisation heavily invested in operational and capital expenditures as initial investment, the profitability hasn't soared yet but definitely looks to bounce back as customer growth and traction is huge, awareness and top of mind recall is great, multiple partnerships and expansionary penetrative strategy makes it most attractive stock if an IPO is raised and also depicts sustainability due to economies of scale and lack of imitation.