Why-working spaces are seeing rising demand amid COVID-19

As the COVID-19 pandemic wears on, co-working spaces in Singapore are seeing signs of recovery – fueled by companies seeking flexible contracts and people hoping to escape working from home.

These working centres revolve around shared amenities, with offerings ranging from hot-desking places for individuals to dedicated studios for firms.

Co-working spaces offer shorter leases compared to traditional office spaces, which typically lock-in contracts for at least two to three years. This flexibility has become an even bigger lure for companies, faced with economic uncertainty amid the drawn-out pandemic. While the overall office market has been slower, the co-working space has seen an increase in demand for certain products.

Operators also believe that people are coming back to co-working spaces because working from home may not be sustainable in the long run. Many have learned that working from home is only effective for a finite amount of time. Some may enjoy working from home, but for the majority, they find a conducive office environment allows for greater focus and productivity, team collaboration, and human connection. Operators said they are fairly optimistic about the sector’s outlook, barring any deterioration in the public health situation.

Teo Heng Reopens to“good response”

Homegrown karaoke chain Teo Heng KTV has been struggling to stay afloat since it was forced to close after the Covid 19 outbreak in 2020. Plan store open under a pilot program subsequently was also scuppered by a spate of new community-infection cases.

Since then,the chain’s fate has been hanging in the balance till Mar 18 2021, when it posted on social media that it was reopening three outlets. ButperCovid-19regulations, there’s still no karaoke singing allowed. Instead, there opening will allow customers to book to Heng’s rooms to “work, chill and dine”

According to Teo Heng, customers can book rooms for working, studying, birthday parties, or even live-streaming. Birthday decorations are provided. Those who wish to bring their game consoles to play in the room scandals do so.ResponseforTeo Heng’s reopening has been good, with many calling in for reservations.

The reopened outlets will also sell microwaveable meals supplied by foodservice provider Select Group. Prices for food will start from “as low as$3.60”.Teo Heng will also continue to offer its famously affordable canned drinks at $1 each.

Task:

You have decided to set up an aco-working/study space with a few friends since the outlook of this business seems promising. Theventurerequires about $800,000.

OCBC Bank offers loans for SMEstart-ups and you have decided to take up a loan with the bank.

Prepare a proposal using

Questions1-2 to MrsStacey Chang, Loans Manager of OCBC Bank, with your business plan to convince the Bank to give you the loan.

Question1

Examine a segment of the market you intend to target for your new business venture.

Question2

Illustrate your knowledge in trading area analysis based on your chosen target market group, and select the location for your co-working/studying space. Indicate the choice of your location.

Question3

(a)Conduct a literature search and discuss the research paper. First, log into your SUSS Student Portal and access the Library E-resources. Using any of the databases listed, select two (2)articles in the Marketing & Retailing area that discuss retail pricing.

Basedonthesetwo(2)articles you have selected, create a table with the following information:

b. Based on your learnings from the class and your research of the academic journal articles, propose a suitable pricing strategy for your service(s), and examine the likely impact on your target consumers.