How viable is the serviced office concept in Bangladesh?

Abstract

This internship report analyzes the viability of serviced offices within the setting of Bangladesh. For this report, research was conducted in four serviced offices. Survey was conducted in LOCUS, Shuru Campus, Madhub and Moar. Interviews were then conducted with the founder of LOCUS – Mr. Abir Mallick, the Office Manager of Shuru Campus - Ms. Dil Afroz, the Business Development Executive of Madhub - Mr. Salman Hossain Mimo and the Community Manager of Madhub - Mr. Md. Khairul Alam Rabi. Since I was actually completing my internship at LOCUS, it was possible for me to use their financial data and perform a financial analysis. To compare the financial analysis with other serviced offices, a question was included within the interview so that some idea may be developed. The results from all the research conducted revealed that buzz marketing or word of mouth marketing will eventually play a major role in creating demand for serviced offices within the Bangladeshi market as this industry falls within a niche market. However, innovative promotional stunts and extensive marketing using other methods will speed up buzz marketing so that the market is quickly educated of the concept. For this reason, all serviced offices should follow LOCUS and invest in diverse marketing methods rather than just relying on buzz marketing. In addition to this, all clients expect a productive and professional work environment within their serviced office. Therefore, the most necessary components of a serviced office should be high-speed uninterrupted internet, constant supply of electricity and constant cooling system. LOCUS proved to have constant availability of these features and even have backups just in case. Other serviced offices did not have entirely satisfied clients as did LOCUS. Finally, the financial performance of serviced offices can be optimal if the right level of investment is done while ensuring the right level of service quality and cost reaches the right client with matching requirements. The research revealed that all clients were generally satisfied. Clients willing to pay a little higher for supreme quality were completely satisfied with LOCUS. Conversely, clients willing to spend less were satisfied even though they had faced some disruptions at the other three serviced offices. This is why both LOCUS and Shuru Campus, despite offering differing level of service quality, were both able to reach breakeven at their mature stage.