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Oxford College of Marketing

CIM student Number: 70889221

Figure 1: External Analysis (Macro-environment)


1.1 Political: Political stability may affect the security in a given market which is a critical criterion of judging expanding location,
such locations with local struggle as in some African countries.
1.2 Economical: Markets economic conditions (GDP, interest rates, economy composition) and spaces availability affects the
providers interests as Regus to expand to any new market, which provide comparative advantage, that attract inward
international investments, as emerging markets in Asia and Africa, also unclear economic outlook is a disadvantage for
Regus liabilities resulting a higher risk that could decrease through flexible rent contract terms at mean while it increase the
demand since companies looks to serviced offices as a cost effective solution (P7).
1.3 Sociological: Regus and its team made several philanthropic acts; where they donated to several global humanitarian causes
as; Philippine charity following the flood disaster in 2012, and Susan G Koman foundation for breast cancer, children aid in
Portuguese and Argentina, and children education in China, while in UK it supports Macmillan Cancer support and DeBra for
children with genetic skin condition.
1.4 Technological: Technology helped Regus developing several integrative solutions as cloud printing platforms (DocStation),
cloud voice Platform and Global single sign-on, also the mobile apps and My Regus personalized intranet which enabled clients
to book several services, all of these aspect improve the client experience. Also Regus offers a free technical support trail through
its partnership with iYogi, Regus offers a Bloomberg updates displayed on screens in centers with partnership with RMG, all
these technologies had helped to enhance Regus value proposition.
1.5 Environmental: Regus continues to participate in the UK government's Carbon Reporting Commitment CRC, where it reduced
its carbon footprint though voltage optimization, A/C behavioral changes to achieve 29% since 2007, with plans to achieve 50%
reduction by 2020.
1.6 Legal: In UK governmental tax payable by commercial property owners led owners to accept leasing terms that are more
advantageous to tenant (P7), while in other markets local complex laws could allow Regus to charge international investors
higher rates for workstations, when they are entering a certain new market, at mean while a barriers for competitors(P6).

Figure 2: Environmental Analysis Porter 5 forces


2.1 Threat of entrants: (High) Grade B & C, Furnished offices & semi furnished offices Competitors from all grades constantly join
the market (P6), but Regus premium quality position and network coverage is the main tool against them.
2.2 Threat of substitution: (Low) Just rent offices is available but rent is almost 40% of the operating cost for the office, and
current marketing conditions is favorable not to have fixed cost or running costs liabilities as power, security or maintenance
which makes this threat as minor effect, which makes un-serviced office a costly choice. (P5)
2.3 Supplier bargaining power: (Vary/market) Landlords bargaining power will vary according to the country. UK (Low) recent
commercial property tax had been in the favor of tenant, while in growing economies (high) the landlords may have relevant
higher power due to the demand and escalating rents rates.
2.4 Buyers bargaining power: (low) Buyer bargaining power will depends on the market stability and growth, where in fairly
stable market buyers can approach Grade B or C service offices provider for lower quality and prices. But in approaching a
Grade A provider they will be sacrificing Regus global network coverage and its product range. Also the bargaining power will
vary according to the company/market status, so if it is new incomer it will not have high power
2.5 Industry competition: (high) Competition is high locally and globally, where competitors acquire each other's in order to gain
more market power in the increasing market's demand due to economy service industry nature.

Figure 3: Ansoff Matrix- growth strategy

Porter - Competitive Strategy

3.1 Market Penetration: Regus constantly communicate online and offline


promotions (P14) and recently it acquired some competitors.
3.2 Market development: Regus constantly develop new markets to widen its
network to serve its customers growing demands locally and globally (P10,12).
3.3 Product development: Regus invest in researches abouts its customer
needs to constantly develop new products and packages for their needs
3.4 Diversification: N/A

3.5 Differentiation: Regus differentiation


Competitive strategy perfectly aligned
with its market leadership position, brand
identity, global network presence and its
integrated services, which is reinforced
with its different growth strategies,
Segmentation and targeting !!!, market
share customer satisfaction, !!

Figure 4: Marketing Mix Analysis


4.1 Products:
4.1.1Product BCG analysis: Regus is customer-centric organization, which understand customers' current and future needs,
balance price to quality, provide all needed information to convey a purchase online, also its product range is well distributed that
secure sustainable current and future revenues, in the following is analysis to Regus product and services using BCG matrix

Mature

New

Third place

Location

Services offices
Branch offices
Co-working
Workplace recovery
Day office
Stores
Meeting rooms
video conferences

X
X
X
X
X
X
X
X

X
X
X
X
X
X
X
X

Collaboration spaces

Business lounge

Products

BCG

Cash Cows with low


growth and high
market share /
Problem child with
high market growth
and low market share.
Stars with High
market growth and
high market share.

Recommended action

Mature locations are cash cows, which needs maintaining (hold)


promotions and brand awareness, to sustain its cash flow.
New locations are problem children, should adopt growth plans (Build)
through brand awareness and value proposition, to convert them into stars.

Third place locations are stars with the rising mobile workers increasing rate
it has a very high potential for future cash generation, Regus needs to invest
in Regus express brand and product awareness and its value proposition.

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Oxford College of Marketing


Think pods

Virtual offices

Dogs
Stars

CIM student Number: 70889221

It is a complementary product where the company should just (harvest) its


revenues until it is obsolete.
It is a product that needs investment to communicate its value to the
customer with stressing on its benefits globally since the idea may be new to
some emerging markets.

4.1.2 Product development: Regus new product development contain significant innovative products as Regus Express
(Market innovation through new delivery channels), minor innovative products as virtual services and business support
(Process innovation) and no innovative products as tailoring of the packaging for different customers' need (Product and
position innovation), these innovations comes from understanding the customer needs and responding to markets' opportunities,
which enable Regus to constantly develop the customer value securing its Leadership to the serviced office market globally.
4.2 Promotion:
Regus communication mix established a good differentiated brand image with a standardized consistent message globally 'work
your way', also improved customer retention & acquisition through information and persuasive two-way regular communication,
where Regus rely mainly on online marketing which give it advantages as; low cost, conduction's speed, wide reach and creative
interactions, which helped enhancing profitability for the past years, communication activities' detailed analysis as follows:
4.2.1 Online Marketing: Regus online marketing act as a pull tactics to communicate directly to the company, be updated with
Regus's news and information, beside its effectiveness in New York and 5 other locations in short period, Regus's social media
global survey provided extra scope on social media importance to communicate companies news especially in emerging market
as China and Mexico, all these evidence made Regus to recruit a social media manager, who was assigned to develop a
standardized program for abroad operations to increase social media awarness. Regus approach to online marketing consists of;
Website's search engine optimization to appear in the first page of serviced offices search; mobile apps to ease customer
experience; blogging, youtube, scribd, webinars and white papers to provide information as case studies, testimonials and
researches for customer which act as online PR; also linkedin, twitter and facebook as low cost viral marketing tool for social
interaction to emotionally attach customers to Regus Brand and to use, also Regus offers a bit of customization per country
and individuals where website has a homepage to each country with its language, also it provide clients and customer access to
personalized privet accounts through which they can manage product services they use or wish to use, also Regus products and
services is visible for quick enquiry or booking to encourage trail and usage, and customers could find book a tour, read several
case studies and testimonials, which help to communicate how Regus's product and services used to meet customers' needs.
4.2.2 Offline Marketing (there are no enough data) : Sales Promotions: Regus occasionally allows its building sales manager
to offer promotional offers to maintain a certain level of occupancy that secure profitability, and usually offers promotions on 12
months contracts, also it offers a free technical support trail through its partnership with iYogi. In addition to customer's
Bloomberg updates displayed on screens in centers with partnership with RMG. //Corporate identity: Regus logos with its
strapline 'work your way' appear in each location with its standarized design demonstrate its corporate identity and
professionalism globally. //Specialized magazines: Regus do interviews with specialized magazines which acts as a PR
reflecting professional image. //Internal Communication: is good in creating a customer orientation culture, product awareness
and news through emails but it lacks motivation and retention to employees.
4.3 Pricing: Regus objective: Serve profitably, Framework: multi-dimensional pricing (Offset, Diversionary), pricing aspects:
depends on; size, location, range of services, floor locations, room's windows number and lease length, and generally it is in the
premium range. price promotions: competitive rates to maintain occupancy (devalue Regus brand), and loyalty discounts
through website. BASE PRICE Include standard service offices, in addition to receptionist and telephone answering services,
which is competitive to its Grade A services. EXTRA PRICE for telephone, internet, meeting rooms and secretarial services,
where the rates for these services are variable according to the needs (P8), and it fluctuate according to mentioned aspects
4.4 Place: Recently Regus made several partnership, in order to cover its mobile worker's needs, check Figure 4
4.5 People: Regus general rule is 'think global but recruit local' to benefit from local knowledge of customer, culture, language
(P11), where it appoint a manager who is expert in the local area who can support customers with information about local issues
and how things works to enhance the customer experience through information support, also it develop their team through
headhunting leadership as Rick Vlemmicks and Marc Nohr (P14), whom appointed a social media manager to develop a global
social media training programmes to maintain same level of professionalism globally, which enhance the customer
communication(P15), also Regus has intranet to keep its employees updated with its latest news and appointments (P11).
4.6 Physical evidence : Regus has a number of physical cues as its third places networks offerings (Regus Express) and
Websites' offers (refer to point 4.2.1.), also its corporate identity that is communicated through its branded offices uniformity globall,
in addition to its staff trainings and different notion of what customer service constitutes.
4.7 process: Regus has amended the process of customer attraction where it serve the prospect through booking online a tour or
having quotation, through being a customer and having a personalized internet content, and online reduced price offers, in addition
to its free apps for several mobile platforms, and Sat Nav which is compatible with several navigation platform which enhance
customers experience, which leads to customer loyalty.

Figure 4: Managing Channel Relationship Cateora (1993) 5C's framework


Channel partners are mainly third places providers (Regus Express), where these locations will differentiate Regus through its
expanding locations and remind customers by Regus through its logo, and influence the need to engage it.
7.1 Coverage: Expanding Regus network to partners locations as retailers' sites, airports, railway, and communities, increase
Regus awareness and products and services availability, which shall increase the mobile workers' needs and demand as well as
international business employees, since they can be productive on the move.
7.2 Character: Regus Express (Partnership locations) shall increase Regus's availability, utility and dependability for Regus's
customers' especially mobile workers and international business employees, that positively affect brand loyalty, but it needs to
study the adaptability of a given partner.
7.3 Continuity: Contracts sustainability depends on market stability, where Regus should assess the risk accompanied through
introducing flexible leasing to avoid disputes and financial losses in economic downturns as 2012 case.
7.4 Control: Regus express location should ensure that these locations provide the best possible service and follow corporate
identity, at mean while it should be selective regarding locations from locations' quality, traffic, and accompanied brand, since it
will affect its customers' perception.
7.5 Cost: Regus should study the expected traffic which may indicate the ROI and profitability on a given location, through defining
assets shared, replaced, unutilized and exist cost for the contract.

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CIM student Number: 70889221

Oxford College of Marketing

Figure 8: Positioning map


Figure 9: Brand Analysis Brand Gym (David taylor,2002)
9.1 Essence: Regus exist to transform the way companies worked by persuading them to outsource their work place requirements
to a specialist (P9), where Regus could serve and profit from the structural shift towards flexible work by being the platform of
choice from which business operates and expand globally. And Regus standardized brand globally gives it constancy and
professional image, also higher perceived quality.
9.2 Brand truths: Regus provides a premium quality extended range of serviced offices. Also it tailors packages according to its
different customers' sector as; start-ups, home-base, SME, international business and corporate workspace, in addition to further
amendments to their needs as; expanding internationally, after disaster recovery solutions and support business services (P12),
which illustrate Regus rational approach it its brand assurance.
9.3 Values: Regus main principal is constancy in customer service globally, where each country's customer service representatives
follow a detailed list of required procedures (P17), also the centers managers are expert on local area information. Also it
continues to participate in the UK government carbon reporting commitment (P18). Also it eases the ordering process through the
internet.
9.4 Benefits: Regus provide Grade A quality prestigious locations for effective cost, with flexible lease terms, with a wide network
globally in 100 countries, extended business support services and several tailored packages which act as a real differentiator.
9.5 Personality: Regus continue to provide the flexible, innovative and practical Brand style, where it its marketing content tend to
convince through prices offering and calculations, case studies, demos and products features and benefits, also it educate
through trend reports, articles and researches. While it uses social media for customer emotional attachment to the brand.
9.6 Brand promise: Regus promise innovative and accelerated product offering and customer services and expanding network
(P10), as a response to developing customer needs, with 'work your way' concept in the center of its proposed values (P13). Also
to expand its network to locations nearer to where people live to drive brand awareness and interactions (P10). In addition to
places where people can drop and be productive as if they are in their offices as Regus Express (13).
9.7 Core insight: Regus has a strong customer-based Brand equity globally, through its high brand awareness and image through
its strong global presence, online communications through website and social media and offline communication (P14,15), also its
mature corporate identity that drives its offices exterior and interior branded designs which are founded all over its locations (P16)
9.8. Consumer target: Start-ups, Home-based business, SME, international business and corporates, especially those in IT and
business service industries.
9.9 Market definition: Serviced offices consist of commercial buildings that provide shot-term contract accommodation, including
reception services, furniture, telephony and informational technology infra-structure. While providers are categorized into; Grade
A denotes high quality new refurbished offices, Grade B denotes good quality second hand or refurbished offices, and Grade C
denotes poorer quality.

Figure 10: Service Quality analysis


10.1 Reliability: Regus knows its market and understand what is relevant and important to its customers, it is aware of customers
need beyond its product ranges which makes it exceed customer expectations, such as recruiting center manager aware of the
local area with information about anything from who to talk to in government to where to find a good restaurant.
10.2 Assurance: Regus offers non-customers to book a free tour in any location, also it offers instant quotations for prices
comparisons, also it provide its clients with private network to benefits from personalized intranet content and offers. Also
publishing white papers of Regus key researches provide a level of confidence and trust in Regus.
10.3 Tangibles: the website demonstrate the product in a good visible way, even though it could be enhanced using modern new
video marketing content techniques to make a video for each product, also office external and internal brand design according to
corporate identity demonstrate Regus professionalism. Also testomonials
10.4 Empathy: Regus customer service representatives are obligated to follow a detailed list of required procedures for instance to
assure its high quality service; also it provides a range of tailor packages for customers' specific needs, where Google business
case demonstrates how Regus meets its customer needs. While Regus should rectify its employees internal satisfaction since
they are the lifeblood of Regus and the key for good customer experience, to enhance its ratings on glassdoors.
10.5 Responsiveness: Regus products and services meet its customer expectations, as per Trustpilot it has 8.4 out of 10.

6'Cs
Cutomers & Market: Regus key accounts are mainly the international business as; Google, GSK, Starbucks and Accenture
(P12), while other customers are start-ups, home-based business, SME and work stations corporates, whom mainly belong to IT
and financial service industries, with constantly fluctuating needs. Market Global Market is estimated to be US$6 billion with
average growth 11% annually. Regus is accounted to 20% market share, also considered to be the largest provider globally.
Emerging markets ( especially Asia & Africa) is 12% & growth 21% (124 center last year), UK is 36% & 4% growth, taking in
consideration new trends as specialization & transportation hub places in UK market.
Competition and position : Recently Regus acquired several competitors as MWB business exchange (UK), Evans Easy space in
(UK), Office Suites plus (USA), and Corporate office centers (USA), which reduces appendix 2 to the following competitors:
Servcorp, BizSpace, Premier business center, The Executive center, Sirius. But it doesn't affect Regus position on the top of them
in quality, extended property service range, and cost.
Core competencies and assets
Chances and opportunities
Critical success factors or problem to cover
Constraints

Figure 12: Shareholder analysis Mendelow's (1991) power/interest matrix


Customer/clients Suppliers Partners Employees - Communities
Shareholder

Needs

Action

Current relationship strategy.

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Oxford College of Marketing


Key account
customers /
Clients

Shareholders

New
customer
Employees

Suppliers /
partners
Pressure
Groups
Governments

Extended offering / product


development to needs / Loyalty
offering / discounts / high quality
service / fast processes / updates
/ adoptive availability.
Regular reporting / Acceptable
ROI / Risk assessment plan /
market share
Good price vs. quality balance /
new product covering their needs/
ease of purchase / updates
Salaries / Career path / friendly
environment / updates
Long-term contracts / fair terms
and conditions / clear policies /
regular payment on time
Clear CSR policy / Ecological
operation
Follow regulations and law

CIM student Number: 70889221

Regus consider being partner with its key accounts as Google,


GSK, Starbucks and Accenture.
Manage
Closely

Keep
Informed
Keep
satisfied
Keep
satisfied
Monitor

Regus profitability has been improving for 3 years, with


developing market share through several acquisitions and new
market development; also it has regular annual reporting
reports.
Regus offers fit its different customer needs, and it constantly
develops its process to improve its customer experience.
Despite Regus current communication, it needs to motivate
through internal communication, and work in their need since
they are a critical aspect in CS.
Suppliers' contract's terms, condition, risks and liabilities
should be clear, fair and applicable.
They are informed by press releases through communication
channels and website reports

Figure 14: SWOT analysis

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