ELUMIERE’24

PRESENTS

∑NIGMA
THE CASE STUDY COMPETITION

#TheGameIsAfoot
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RULES AND GUIDELINES

1. Submit the solution via the Unstop Portal by 11:59 PM, 14th March 2024 (Thursday).
Late entries will be penalized or disqualified at the discretion of the organizing team.
2. All solution files must contain the Team Name, Participant Names, Phone Numbers,
Email IDs, and College Name(s).
3. The solution must be submitted in a PDF Format with the file name: ‘Team
Name_Enigma’24’. The solution should not exceed 6 slides (excluding appendix and
the title page).
4. Any assumptions made must be clearly stated and justified. Any calculations should be
shown.
5. Use of the internet is permitted.
6. Plagiarism shall be strictly penalized.
7. The judgment shall be made based on the logical flow of solution, analytical skills, the
viability of suggested solutions, and innovative ideas.
8. The case may not be transmitted, photocopied, digitized, or otherwise reproduced in
any form or by any means without the permission of the organizers.

In case of any queries, feel free to write in to ecovision@sscbs.du.ac.in or contact:

Parv Agrawal: Tisha Suneja:

+91 8115711555 +91 8130248717

Ecovision, The Economics Society of Shaheed Sukhdev College of Business Studies

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COWORKING: AN INTRODUCTION
Coworking is a term used to describe a working arrangement in which people from different
teams and companies come together to work in a single shared space. It is an environment
that’s designed to accommodate people from different companies who come to work.

Coworking space is characterized by shared facilities, services, and tools. Sharing

infrastructure in this way helps to spread the cost of running an office across members, but
coworking spaces are more than just a way of reducing overhead. Coworking spaces are
community centres, collaboration hubs, and social spaces where workers from different
backgrounds can come together to share expertise and explore new ideas.

INDUSTRY BACKGROUND
The first-ever coworking spaces began appearing in the early 2000s. They attracted mostly
self-employed freelancers and web entrepreneurs searching for an alternative to working
from coffee shops, business centres, and home offices. Since then, coworking has become
a global phenomenon, and coworking spaces themselves have evolved to keep up with the
changing ways we work. Today, they’re used by everyone from individuals working
remotely to entire corporate teams.

Lately, coworking spaces are also being used by larger companies seeking to cut down on
their unused office space, move away from traditional headquarters, and embrace a more
flexible way of working.

Coworking spaces are a way for growing businesses to expand into new areas and access
fresh talent pools without taking on the risk of a long-term lease. They’re a convenient space
for newly remote workers to continue to meet and collaborate with colleagues without
having to travel too far.

Following are the market trends of the Coworking Industry in India:

• The market size of the Coworking Industry is USD 1.94 billion as of 2024 and is
projected to reach USD 2.72 billion by 2029, exhibiting a CAGR of 7% in this period.

• Coworking spaces occupy 43.36 million square feet of space in India’s metropolitan
cities, accounting for 3.9% of all real estate in these metropolitan cities.

Ecovision, The Economics Society of Shaheed Sukhdev College of Business Studies

 ΣNIGMA
CURRENT SCENARIO
The current state of the coworking space industry presents a captivating opportunity for
forward-thinking players. While established businesses are present, their lack of innovation
and absence of a dominant leader creates a vulnerable ecosystem ripe for disruption.

The pandemic, despite its challenges acted as a catalyst, fuelling the demand for flexible
workspaces. It created a perfect storm, a burgeoning market yearning for transformation
and established players seemingly content with the status quo.

The industry eagerly awaits a company capable of redefining the very essence of coworking
spaces in India. This visionary force must possess the agility and audacity to shatter
outdated conventions and forge a path towards a dynamic future through expansion.

COWORKING SPACE X: COMPANY OVERVIEW

Founded in 2018, Coworking Space X, a Noida-based startup has been in the coworking
spaces business for the past few years with major operations being run locally. Established
as a haven for modern workstyles, Coworking Space X has carved a niche in Noida's dynamic
business landscape. This vibrant space boasts meticulously designed offices that cater to
the diverse needs of organizations, fostering a community primed for exponential growth.

Coworking Space X works on a capital-light lease renting model, wherein it acquires long-
term leases for its properties and furnishes them into functional and aesthetic coworking
spaces. Currently, it operates 4 buildings in different sectors of Noida boasting a capacity of
more than 2000 people.

Recognizing the Indian market's appetite for flexibility, Coworking Space X offers a spectrum
of membership options, ranging from short-term stints to long-term commitments,
alongside the ability to tailor terms to specific needs. The traditional players in this market
have not been able to capture the market fully or exploit the high potential of the coworking
space industry due to a wide variety of reasons such as lack of community building, weak
brand image, standardized offerings, refusal to recognize the booming gig economy and so
on.

It is time for Coworking Space X to move out of their comfort zone and increase their reach
in the coworking scene of India by facilitating rapid expansion across major cities with a
sizeable corporate crowd.

Ecovision, The Economics Society of Shaheed Sukhdev College of Business Studies

 ΣNIGMA

STRATEGIC DISAGREEMENT
In December 2019, an angel investor joined Coworking Space X with the goal of creating a
national brand. However, the plans were impeded due to the pandemic shutting down
offices. The angel investor has been patient as Coworking Space X has continued in Noida
and taken a slow and steady approach. He now wants the company to get back to its prior
goal to expand further geographically.

On the other hand, due to the exceptional potential of the revolutionary business model of
Coworking Space X, various smaller companies are emerging by replicating their product
offerings. This might lead to an erosion of the first-mover advantage gained by Coworking
Space X in the past few years. The founder wants to ensure that their current innovative
lead isn’t lost amid rising competition.

You have been hired as a consultant for Coworking Space X to formulate a strategy
balancing both objectives effectively.

PROBLEM STATEMENT
These are the deliverables to be incorporated in your solutions:

1. Develop a comprehensive expansion strategy including but not limited to city selection
analysis and product-market fit assessment, keeping in mind the dynamic business
environment in the chosen market(s).

2. Formulate innovative strategies to counter the business model replication and

introduce new elements in their product offerings. Identify suitable partnerships with
relevant corporate brands as well.

3. Conduct five-year financial projections of Coworking Space X, showcasing the impacts

of your expansion strategy and ascertaining their profitability. Clearly state all
assumptions and draw suitable insights.

Ecovision, The Economics Society of Shaheed Sukhdev College of Business Studies

 ΣNIGMA
APPENDIX
FINANCIAL OVERVIEW OF COWORKING SPACE X

Particulars Dec 2024 (in ₹ lakhs) Dec 2023 (in ₹ lakhs)

Net Sales 901.98 820.56
Other Income (Ancillary Services) 25.72 21.86
TOTAL INCOME 927.70 842.42

Compensation to Employees 113.11 96.14

Rent and Lease Rent 366.54 353.82
Repairs and Maintenance 40.21 34.18
Selling and Distribution Expenses 55.69 51.37
Marketing Expenses 63.78 49.38
Research and Development Expenses 41.46 35.24
Depreciation 144.38 135.29
Finance Costs 82.49 76.12
Miscellaneous Expenses 7.48 6.36
TOTAL EXPENSES 915.14 837.9

Profit before Tax 12.56 4.52

Tax 3.14 1.13
Profit after Tax 9.42 3.39

Ecovision, The Economics Society of Shaheed Sukhdev College of Business Studies