Question

What is the value proposition of the business, Liquid Space? What is the competitive advantage of Liquid Space over other competitors such as We Work and Shared Desk?

Answer 1

The online marketplace Liquid Space helps companies and businesses rent office space, while also being a workspace for different stakeholders (including space owners and tenants). Around 2 billion sq. feet of office space was added to the existing workspaces, in the last 30 years in the USA. Freelancing, mobile workforces, outsourcing, and other similar reasons led to the occurrence of these empty work desk and workspaces. Liquid Space unearths these hidden spaces and makes them profitable to all parties involved.

Liquid Space provides a venue or platform where the space owners/ holders and the office space seekers can connect to each other for a bargain and for actually making this resource useful. But the company is not a mere classified or business listing for finding out space including temporary space, team office, satellite office, and/or project office. It is also offering technology and Cloud Computing to its clients and businesses to know how the office space is actually being used and how it can be used the best way.

Hence the value proposition of Liquid Space lies in its USP or differentiation of offerings. The technological, digital, or software workspace and services that the firm offers to its clients along with real-time search results for space searches (backed by artificial intelligence), helps clients rent a space and automate the office environment. For instance, a touring industry office space seeker can use the Liquid Space online platform to rent an office space and to automate its tour scheduling or booking management processes.

The company also allows the customers to book and use office spaces for the short time period and has an easy cancellation policy as well. Hence a business or individual can use the office space in the most productive way by using the space and the integrated automation software and solutions offered by Liquid Space. It is also not necessary for the businesses to rent a space for a long or unnecessary period of time, which leads to further cutting of cost and lowering of expenditure.

The company’s office space search digital model and software is also quite futuristic and always has satisfactory results for the clients who seek office space. It analyses the requirements of space and the proprietary algorithm is capable of learning (artificial intelligence). The results that it offers to the clients also take into account reviews, favourite, other network activities and are based on real-time availability of space and location filters.

The new model hence eliminates the traditional leasing concept and its use and cuts down on the complexities and costs.

Competitive advantage Liquid Space has over its competitors such as We Work and Shared Desk

Liquid Space has distinctiveness competitive advantages over businesses like We Work and Shared Desk that has come to it because of the uniqueness of the platform it has created.

1. Differentiation and USP

The flexible and powerful office space rental platform offered by Liquid Space, along with the other services like workspace is a USP or Unique Selling Point of the business, which has for the first time provided for the personalization of office space rental services. USP of Liquid Space can also be termed as its differential advantage as the offerings of the company may be superior (as perceived by the market) to what competitors including We Work (long-term leasing) and Shared Desk (mere space availability) are offering. The proprietary technology, unique business model and innovative processes and services drive differential advantage for Liquid Space.

2. Larger Market Size and Stakeholder Strength

Liquid space has a much larger customer base and stakeholders strength when compared to its competitors like We Work or Shared Desk. It serves to the needs of real estate managers, professionals, startups, brokers, building and space owners, office business centres, hotels and the like. Therefore the market size to which the company can serve through its innovative space and service model is quite large and exclusive. The "platformization" of the work-space real estate, as offered by Liquid Space is more comprehensive, innovative and caters to both short hot short term and long term need of the clients.

3. Advanced Technology

Liquid Space also offers its customers cost-effectiveness in their transactions as it connects the two parties viz. the space seekers and the owners directly and there is a total absence of any middlemen or third party. The firm is able to do this through the use of latest and digital technology. The technology is also helping Liquid Space connect its clients in real time and also provides for search results based on artificial intelligence. These result suit, match and excel the client aspirations and need perfectly.