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Mary Main Points Case Overview 2019 IMA Case Study The Optimistic FutureSituation Analysis ——Sharing Economy Strategy Model of Mobikeor Access Economy? ： TEAM TYR BACKSolutions & Budget

Summary Mike Emma Jason Edward SharingIndustry Economy Background Industry Life Cycle

• Positive attitudeIn 2017,towards the Sharing bike- Economysharing Industry• Environment reached protection • Related supporting4.9205 policiestrillion yuan, increased• Green by 47.2%-travel awareness from last year. • Encouragement of capital cooperation • Transportation problems (Traffic jams, etc.) • Extensive damageLiving-Serviceto Shared Business bikes 1.3214 trillion yuan

• EconomicTransportationgrowth Sharing-finance 201 billion 2.8264 trillion yuan • Intelligent manufacturing • Development of Eco-friendly economy • Cloud Platform & Big data • E-commerce development Many SharingManufacturing• Internet Industries of KnowledgeThingsBankrupted &(IOT) Skills 412 billion yuan 138.2 billion yuan Building HealthCare • Smart & Mobile payments 14.5 billion yuan 7 billion yuan

Source : Sharing Industry Development While Paper 2018 Infancy Exploration GrowthPEMaturityS T Case Overview Situation Analysis Strategy Model Solutions & Budget Future of Industry SharingMobike -vsBike EnterpriseOFO Mobike Similarity

Customer FocusSingle on advertisement public relations OpenImprove market customer with low loyalty price Active User Coverage of Sharing-bike APP Product Time for statisticsCowDog 2018.02 ProductionProduction (Source : www.analysys.cn) 50.89% 49.14%

OFO $ Mobike Finance Hello OFO and Mobike occupies the vast majority of the market of Bike-Cost the Sharing-bike industry. 5.64%

Profit-Mode

Case Overview Situation Analysis Strategy Model Solutions & Budget Future of Industry ProductionFixed Base (BCG Growth Matrix Rate of) Monthly Users (from Jan. to Nov. in 2017) 600% （ ） Relative Position Market Share Number of Shared Bike Low High Monthly Users Enterprises > 70 500% Monthly Active Users Number of Users > 106,000,000 Region Number of Bikes

400% Dogs Cows Chain GrowthShenzhen Rate of Monthly> 890,000 Users Low 8.21% (from Apr. to Oct. in 2017)> 1,000,000 …… …… 300% Chain Growth 5.46%Rate： Low Market GrowthTotal4.86% > 16,000,000 8.21%Number of (Apr.) Bikes in Some 200% Cities Are Saturated Question marks Stars 1.49% -2.43% (Oct.)1.38% 12 cities have suspended -0.26% the rollout of shared bikes

High 100% -2.43% Business Growth Rate (Market Growth) (Market Rate Growth Business (Source: CNNIC, since Aug 2017) 0% Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Case Overview Situation Analysis Strategy Model Solutions & Budget Future of Industry Production (BCG Matrix)

Relative Position（Market Share） Penetration Rate in Vehicle Service Industry Low High Sharing-bike Industry Scale: Mobike ofo 3.86 Billion (Q2,2017) 2017.2 12.13% 5.08% Chain2017.1 Growth9.85% Rate 313.5%2.70%

Low Dogs Cows 2016.12 8.07% > 2.50% High Market Share2016.11 4.90% 1.40% Proportion of Active Users OFO 36% Mobike ofo Question marks Stars 2018.2 49.14% 50.89% High 2017.10 49.40% 49.4% Mobike 51%

Business Growth Rate (Market Growth) (Market Rate Growth Business 2017.4 55.20% 54.4%

MarketHigh Share Proportion (Srouce: Iresearch 2019.2)

Case Overview Situation Analysis Strategy Model Solutions & Budget Future of Industry ProductionMobike vs OFO(BCG Matrix)OFO Mobike Similarity

CustomerRelativeFocus Position on（ Marketpublic Share relations） Improve customer loyalty Low High Control the cost Product Cow Production  Stabilize the heavy asset IndependentAcquisition entrepreneurship byinvestment Meituan bicycles. Low Dogs Cows $  Reduce cost of capital on bicycles. Finance Depend on capital investment and have strong capital dependence Expand the market  Transfer heavy asset investment Question marks Stars High Bike-Cost in bicycle ecosystem field. Business Growth Rate (Market Growth) (Market Rate Growth Business

Profit-Mode

Case Overview Situation Analysis Strategy Model Solutions & Budget Future of Industry Investment

Mobike OFO Investment Contrast-Venn diagram(Source : Iresearch, 2018.6) Time Round Amounts Time Round Amounts 2015.3 Angle Round ¥1.46Million 2015.3 Angle Round ¥ Millions 2015.10 A $3 Million 2015.12 Pre-A ¥9 Milion Amount: Large 2016.8 B Amount: Small$10 Million 2016.2 A ¥15 Million Meituan provides financial support for Mobike to implement its 2016.9 B+ $10 Million 2016.4 A+ ¥10 Million future development. OFO has pledged core capital and the future 2016.9 C $100 MillionFrequently Financing2016.9 B $ Millions 2016.10financing is notC+ optimistic$100 Million. Ownership After Financing: 37% Ownership After Financing: 70% Strong Capital Dependence2016.9 B+ $ Millions 2017.1 D $215 Million Bubble Economy 2016.10 C $130 Million 2017.2 D+ $100 Million Investors: Strategic 2017.3Investors: StrategicD $450 Million 2017.6 E $600 Million Cooperation with Alibaba Cooperation with Tencent 2017.4 D+ Strategic 2018.1 $1 Billion Investment 2017.7 E $700 Million 2018.4 Merged 2018.3 E2-1 $866 Million

Case Overview Situation Analysis Strategy Model Solutions & Budget Future of Industry Mobike vs OFO OFO Mobike Similarity

Customer Focus on public relations Improve customer loyalty

Product Cow Production

Acquisition by Meituan $ Finance Depend on capital investment and have strong capital dependence

HighLow--costcost bicyclebicycle SelfOutsourced-developed Self-established Joint production parts bicycles factories Bike-Cost parts

Profit-Mode

Case Overview Situation Analysis Strategy Model Solutions & Budget Future of Industry The Cost Behavior of Mobike

Fixed Cost ￥2,233,500,000 Per Year MC P Margin AnalysisDepreciation Cost of loss Online Operation Advertisement Maintenance (existing bicycles) (existing bicycles) In terms of margin, the marginal cost P*￥ 40M ￥ 6M ￥ 100*3.5M ￥ 375*3.5M ￥ 1500*10%*3.5M of each by is 1382 each year and the marginal revenue is 1259. Variable Cost ￥ MR1,382 Each bicycle Per Year Cost of bike is 1000, AccordingSo to we IresearchThe can't annual, 3.5 million deliverdamage bikes rateare more is 10%. bikes Depreciation Maintenance cost Operation cost Cost of loss Other cost depreciable life is 4 years. delivered,under the cost current of bike maintenance condition. is 100 DepreciationMR* is< the MC main* perQ bike, the bike depreciation is 4 years and ￥ ￥ ￥ ￥ ￥ part of250 total cost. 100the damage rate is 10%.600 100 332

Case Overview Situation Analysis Strategy Model Solutions & Budget Future of Industry Cost (Sensitivity Analysis)

(Yuan) 35.1% decrease Bike cost 1000 1500 649 500 300 Depreciation 250 375 162 125 75 When the cost decreases to ￥649, each bike breaks even. 10% 10% 10% 10% 10% Damage Rate At this moment, the changing Cost ofCost Loss of bike100 has150 a great65 effect50 on30 hisproportion final netof cost profitis 35.1%. Operationand Cost loss. Controlling600 600 600 the600 600cost is vital! Other Cost 332 332 332 332 332 Sensitivity Coefficient Maintenance Cost 100 100 100 100 100 =100%/35.1% = 2.84. Total Cost 1382 1557 1259 1207 1137 Profits are very sensitive to changes in cost of bike. Income 1259 1259 1259 1259 1259 Net Profit (123) (298) 0 52 122 100% increase

Case Overview Situation Analysis Strategy Model Solutions & Budget Future of Industry Cost (Components of Bikes)

• Front Fork ¥ 200 • Basket ¥ 90

• Aluminium Alloy Frame ¥ 250 The price of the same quality parts assembled together is similar to • Saddles and Seat Post ¥ 225 that of Mobike. So there is little scope for costs to fall. Although Controlling• Lock ¥ 150 The Cost (SourceIs Vital : wholesale , prices on 1688) Cost Control Strategy• Wheels & Brake ¥ Is60 Not (aFeasible. website owned by Alibaba)

• Crank Set ¥ 100 TOTAL : about ¥ 1000 Cost has a great effect on the final net profit and loss. Depreciation is the main part of total cost.

Case Overview Situation Analysis Strategy Model Solutions & Budget Future of Industry Mobike vs OFO OFO Mobike Similarity

Customer Focus on public relations Improve customer loyalty

Product Cow Production

Acquisition by Meituan $ Finance Depend on capital investment and have strong capital dependence

High-cost bicycle Self-developed Self-established Bike-Cost parts bicycles factories

ProfitProfit from from advertisement E-shop CompletePartly deposit deposit free free

Profit-Mode Main profit from deposit and rental

Case Overview Situation Analysis Strategy Model Solutions & Budget Future of Industry Rental (Break-Even Analysis) (Yuan) Depreciation per Year 250 Bike cost is ￥1000, depreciable life is 4 years

Damage Cost 100

Operation Cost CVP600Analysis However, each bike is cycled 4.6 times per day Maintenance Cost 100 actually. The average number of cycled times (Sensitivity Analysis) Anotherper day Solutions…? should be increased by 9.7%. Other CostCost Bike Cost 332 4.6 times/day to 5.05 times/day

Total Cost per Bike 1382 9.7% increase Net Rental Profit Volume Average Rental Cycling Times0.75 (Break-even Analysis (Rental)) (Final Propose) Number of Annual Cycling Times 1842.67 If we want each bike can cover its cost, each bike must be cycled 5.05 times per day. Number of Daily Cycling Times 5.05

Case Overview Situation Analysis Strategy Model Solutions & Budget Future of Industry DepositDepositanalysisanalysis

(Source : Iresearch, 2019.1) 2500000 Deposit Flow Choice 1 Total DepositDeposit: 299 yuan 2000000 Stable Deposit Bank 0.35%The total deposit is not stable ✖ 1500000 5.23 million yuan 5 million Users Demand deposit interest rate

= 1000000

As The Deposit Decreases,500000 Choice 2 The amount of stable deposit decreased It Is No Longer The0 Main Profit Point. Yu'ebaoin the3% later44.85 period. million yuan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov 1.5 billion -500000Rate of return

The Deposit Is Not Sustainable!We can choose… On 18th,Jan,2019,China Consumers• AssociationEarning interestinterviewed by depositingMobike, requiring money that in Mobike a bank . Hugeshould enhanceCapital safety Pool awareness,• andMaking provide profitsbike rental by servicepurchasing in a deposit financial-free way.products. With the gradual establishment of credit mechanism, deposit is becoming unreasonable.

Case Overview Situation Analysis Strategy Model Solutions & Budget Future of Industry Rental Economy vs SharingAccess Economy?Economy?

RentalSharing Economy Economy: Transfer：Integrate the usage social rights idle resources of items intended to for Sharing provide non-exclusiverentingand information for a profit, symmetricproviding exclusive services. services. Economy Access Economy Access Economy: Transfer the usage of rights of items intended Rental Rental Economy : Transfer the usage rights of items intended for for renting with internet, providing exclusive services. Economy renting to othersWhat for aare profit, the providingdifferences exclusive services. among RentalRental Economy Economy, Access Economy and Sharing Rental Economy Rental Economy Sharing Economy Economy? Internet & IOT Access Economy Providers Owners or Intermediators Users of Platform Operating Objects Items+ Intended& for Renting = Social Idle Resources Fundamental Purpose Making Profit Efficiency Maximization☶ Features of Service Exclusive Non-exclusive

Case Overview Situation Analysis Strategy Model Solutions & Budget Future of Industry Sharing Economy vs Access Economy?

☶ FactoryUser Service Platform Service User

Buying and providing assets for leasing ۩ Business-Customer ۩ Funds mainly for purchasing assets Charging rental for assets $ ☶

Providing platform to Funds mainly for lease the idle resources ☶ Customer-Business-Customer platform operation ☶ Charging platform service fee $ ☶

Case Overview Situation Analysis Strategy Model Solutions & Budget Future of Industry Sharing Economy vs Access Economy?

☶ User Service Platform Service User

Buying and providing assets for leasing ۩ Business-Customer ۩ Funds mainly for purchasing assets Charging rental for assets $ ☶

Providing platform to Providing bikes it has Funds mainly for Getting rental from lease the idle resources ☶ Customerbought-Business for customers-Customer Fundsbike production mainly for ☶ renting the bikes $ platform operation ☶ ChargingMobike bought platform service fee $ ☶☶

Case Overview Situation Analysis Strategy Model Solutions & Budget Future of Industry BusinessBusiness ModelModel -CanvasSWOT (Mobike) Core Business Customer Relations • Bike rental Value • Public relations Core Partners • LBS advertising Customer trength Proposition • Delivery of brand S • C2B2C eakness W value to the public Segmentation • Ecosystem • Personalized travel • SupplyGood chainquality enterprisebicycles • HighForming manufacture a complete heavy assets (Life circle) • High-quality bikes • Young people • Tencent’s finance & credit mechanism  • Focusing on aged 15-45 Meituan’sHigh useracquisition activity level  High maintenance cost customer loyalty • App active users • Government S  High market share • For feelings rather Commercial • Habit of using • Internet company Key Resources Single profit model than survival channels Internet product  partners & Competitors W Muti-investment • Mobike Lock • Brand premium • GreatCustomer dependence sales on toolsfunds • Big Data + AI • Supply chain • Customer BaseO Threatencooperative sales Opportunity • Cloud Computing • Dependence on Meituan  Support from Government & Investors T  Fierce competition (OFO, Hello Bike)  Development of EC-Related Industries IncomeCustomers analysis losing faith in this industry Cost Structure • Current income：  •HugeHeavy potential asset operation in campus & high & maintenance other places cost • RecentDeposit trend of deposit refunds • Mainly fixed costs with almost no variable costs • Bike rental  An era of blooming self-media • ManyAdvertisementalternatives Incomeof transportation

Case Overview Situation Analysis Strategy Model Solutions & Budget Future of Industry StrategyStrategy MapOrientation(Profit Competency In The Future) CONDITIONS KEY RESOURCES STRATAGIES Provide basis for IOT technology, GPS information UpstreamMobike(Supplier) Lock Midstreamand(Platform) voice broadcast function.Downstream(Consumer) Market Advertising tradition Advertising MobikeAdvertising Lock Strategy Strategy Production Cow production Key ResourcesC2B2CSharing Sharing Economy Platform Big Data + AI Big Data + AI (Source：Wikipedia)• Mobike Lock C2B2C Bike-cost Ecosystem Strategy • Big Data + AI ☶ Strategy Heavy cost • Customer Base Process and classify information Match different information Scenic Area • Cloud ComputingNavigationCustomer (KNNFunction Algorithm) Base (CNNFitness Algorithm) FinanceCooperation $ MeituanCustomer takeover Base Provide customer flow for new project, CustomerCloudcreating FeedbackComputing future profit points. Cycling EcosystemSport High-end market Profit Mode Perform fast calculation on data to serveStrategy Exploration Mobike-Coin Mall IncidentallySharing Taking Economy Service SingleCloud mode Computing customers more efficiently.

CaseCase OverviewOverview Situation Analysis Strategy Model Solutions & Budget Future of Industry Advertising Strategy-Online

SKIP Key resources Application: Advertisement XX Shop 20%Customer off base Provide a huge customer flow, attracting merchants to Main cooperateCooperationin online & with offline advertisingLarge Enterprise .

Accurate Big Data + AI LBS and APP open-screenAdvertising advertisementdelivery precisely of LBS delivered

based on analysis ofInformation users’ characteristics(age, location, gender, mobikeCloud Computingconsumption ability) with big data. Cloud Computing+AI Merchants Mobike Platform User  Making full use of advertising space in Mobike’s E-shop. Push advertisements when customers ride within 1-2km of the merchants. Advertisements will be pushed on users' cycling routes.

Case Overview Situation Analysis Strategy Model Solutions & Budget Future of Industry Advertising strategy-Offline 30 min 1.0 yuan I WANT IT! Price Plan B If you ride to this position, Planyou will A get a coupons!

“KFC is 500 meters ahead， KFC : Come and have a hamburger! it is a discountOffline day!” cooperation with various brands to achieve common publicity.

GPS System Mobike Lock Built-in Voice Module+ Timely release of voice advertising according to bike’s location provided by GPS in Mobike lock.

Case Overview Situation Analysis Strategy Model Solutions & Budget Future of Industry Advertising Strategy-Budget

Monthly Average Number of Users: 49,924 thousand (According to Statistics in 2017) Total number of cycling times per day: 91,775 thousand 70% of daily use happens in towns and cities and CBD We referred to the Tencent and 3% of LBS ads expected to be clicked made a forecast

10 LSB cooperative merchants According to our hypothesis Advertising will be our core profit point due to Charging Expected Daily AD Types Charge Standard CPM/eCPM Cooperators the rapidMode turnover of funds. It can offset ourIncome(10 Thousand) LBSloss AD . CPC 0.3/click 149.774 10 449.321 Open-Screen AD CPM 100 Per thousand 4992.455 No Limit 499.245 Voice Broadcast AD CPM 100 Per thousand 6424.234 No Limit 642.423 Total Income 1590.989

Income per Month 47729.692

Case Overview Situation Analysis Strategy Model Solutions & Budget Future of Industry C2B2C Sharing Platform

Key resources Application:Extract C 502%B as2 C Sharing Platform I wanna share C2B2C Sharinga commission Platform ! I need a bike my idle bike! tomorrow! Provide location information and bike status for Mobike Lock Process the shares to facilitate platform management. Feasibility & Advantage Customer base Create demand for the new platform and conduct Break-evenpublicity Analysis to create conditions for campus promotion User A I return it User B Real-name authentication AnalysisCloud on users'Platform Cloud Computing Information of I share it! When you canafter use using the it!bike. Bike’s ageBig Data& condition + AI Uncertaintypreferences for bicycles supplied bikes Where&When you can get it. Bike’s price We Build a Sharing Platform to Provide Social Cloud ComputingMobike onlyAnalysis runs on the locationHow platform inform much- Cloud you, aimingComputing should pay. Matchingat location inform- Bike’s locationIdle BikesBudget for ationPeopleof sharers Who and users Need a Roundation Trip.of sharers and users building Customer toThe Customer code of E-Lock. relationship. Expected rental …… ……

Case Overview Situation Analysis Strategy Model Solutions & Budget Future of Industry CFeasibility2B2C Sharing & PlatformAdvantage (C2B2C)

We assume that depreciation period is 2 years,(Non-shared bikes’ depreciation • Solve the problem of users not Painperiod Points is 3 years.) X as rental/hourMeeting and YUsersas bike’’s round price. -trip Needs Sample Capacitybeing able to return734 without a bike. X*0.423*365=Y/6 Proportion of BikeExplosive Owners Products42.23% X=Y/（6*0.423*365） Conclusion: We assume that 77.38% are willing Proportion of Mobike• Providing Users personalized77.38% customer • Feedback Y X X/2 to usePrice Mobike Range(per 0.5 hour) Screaming service,Pain giving Points two-way choice mechanism （ ProportionWhen500 the of platform Sharers0.5397 Extract62.13%0.2699 50% as a commission,0.5-1.5 AnticipatedWe demand surveyed-Actual 734 peopleExceed inUser the Expectations formAccording of questionto round-trip needs- and value=Customer satisfaction） suppliers(bike1000 • 1.0795More-sharers) cost-effective, will0.5397 compared make averagea profit cycling 1rathertime,-2 we assume that Proportionnaires and of Receiverscollected the75.20% following data.• than1500 have a loss.1.6192with otherScreaming travel ways.0.8096 active users’ cycling1.5Fast-2.5 timeiteration is 20min/day Mobike active2000 users : 57.28% (According2.1589 to 2017 statistics) 1.0795 2-3 2500 2.6987Explosion Point1.3494 2.5-3.5 Number of3000 Active Users (3.2384New Mode) = 734*77.381.6192%*75.20%*57.28%3-4 =244.6502 Reputation Optimizing APP DailyExplosion CyclingAbove 3000 Point Time of ActiveCampus UsersReputation = 244.6502Effect*20/60 & Fans Effect Above Communities =81.5508 3 （h） Total Number of Shared Bikes Accumulating = 734 users*42.23Platform%*62.13 betterment% =192.5832 Daily Using Time per Bike = 81.5508/192.5832 =0.423454（h）

Case Overview SituationSituation Analysis Analysis Strategy Model Solutions & Budget Future of Industry C2B2C Sharing Platform

When 100 bikes can be providedWe by bikeMade-sharersAssumptions. for One SituationSchool. 132

Bike'sBike's PricePriceNumber of students：500500 1000100032,00015001500 20002000 25002500 30003000 ： ProportionProportionNumber ofof EachEach kindkind of ofbikesof BikeBike available50%20%10% 20%40%30%8,39610%20%40% 10%10% 5%5% 5%5% TheThe NumberNumber ofof EachEach KindKind ofof BikeBike Average502010 income204030 102040 1010Yearly income55 55 per school per day of one school RentalRental perper HourHour 11 1.51.5 22 2.52.5 33 3.53.5 Situation 1 5,599.62 2,043,863 Bike'sBike's incomeincome perper HourHour 0.50.5 0.750.75 11 1.251.25 1.51.5 1.751.75 Situation 2 6,310.69 2,303,401 TotalTotal IncomeIncome perper HourHour 25105 22.51530 102040 12.512.5 7.57.5 8.758.75 78.7588.7591.25 Situation 3 6,488.45 2,368,285

Daily actual income for these 100 bikes： 66.6975.16yuan77.28 yuan

Case Overview Situation Analysis Strategy Model Solutions & Budget Future of Industry C2B2CEcosystem Sharing Strategy Platform Cost & Expense (Yuan) (Program in 2017) Worries： Operating cost 2,100.00 L1 L2 I’m worried about the high rental Organizational Matainace cost 350.00 Possibility brought by fake information. Frontier (OPF) … … Internet Total cost 4,025.00 Bike

Platform operating expense 130.00 Boundary earnings Internet Bike Maketing expense 421.20 Rental Company Production … … Possibilities Bike Sharers and Users Frontier (PPF) mobike Total expenses 2,503.90Our Answers： Rental Revenue (Program in 2017) Bike-users willCompany provide timely feedback Current and insurance company will pay the Boundary Rental Income 4,406.50 compensation if serious loss occurs. Boundary

Case Overview Situation Analysis Strategy Model Solutions & Budget Future of Industry Ecosystem Strategy

Cost & Expense Revenue (Program in 2021) L1 (Yuan) L2 (Program in 2021) Organizational Riding revenue 6,451.56 Operating cost 3,074.61 Possibility Frontier (OPF) Advertising revenue 6,630.27 Matainace cost 512.44 … … Other revenue-C2B2C 2,484.00 Total cost 5,893.00 + ¥ 4708 Boundary earnings Platform operating expense 371.29 Life Cycle Production Life Cycle with Possibilities Frontier (PPF) Maketing expense 467.03 + ¥ 3972Multiplicity … … MultiplicityOperation R&D expense 1,556.58 Operation Future Boundary total expenses 4,608.62 Larger Boundary Boundary

Case Overview Situation Analysis Strategy Model Solutions & Budget Future of Industry EcosystemEcosystem Strategy Strategy

Breaking the Boundaries Ecosystem Chain “Internet +” Breaking Resource Boundary Upstream Making full use of Upstream Midstream Internet in optimizing Accelerating Industrial Resource IntegrationPlatform Operationthe allocation of social Integration Customer • Developing navigationresources. functions CenteredResource Conclusion: Integration • Focusing customers feedback Breaking Growth Mode Boundary • Cooperating with scenic spots Midstream• Establishing Mobike Coin mall MobikeMarket notDriven Modeonly creates a travel APP, but • Exploring high-end market Platform Operation • Integratingalso superior a resourcescomprehensive living community. Technology Driven Mode To build a customer- centered life circle Value-addedBreak MarketServices Boundary MidstreamDownstream Downstream • Building a fitnessExpanding platform Business Scope Value-added Services • Forming a circularSinking Market sports circle Creating Customer Value • Providing Incidentally-taking services

Case Overview Situation Analysis Strategy Model Solutions & Budget Future of Industry Forecast

Short Term Mid Term Long Term

Cooperation with 10 large Cooperation with 100 large Cooperation with other enterprises in advertising enterprises in advertising enterprises in advertising Advertising Strategy Voice ads implementation Voice ads implementation Increasing number of cities in important cities in more cities cooperated in advertising

C2B2C Sharing Promotion in colleges Promotion in Promotion in communities Platform in first-tier cities more colleges other than colleges

Ecosystem Total establishment of Primary establishment Gradual consummation Strategy Mobike living community

Case Overview Situation Analysis Strategy Model Solutions & Budget Future of Industry Income Statement Forecast

(million ¥) 2017 2018 2019 2020 2021 Riding revenue 4,406.5 4,847.2 5,331.9 5,865.1 6,451.6 Advertising revenue 0.0 5,727.5 6,013.9 6,314.5 6,630.3 Other revenue-C2B2C 0.0 92.0 276.0 828.0 2,484.0 Total revenue 4,406.5 10,666.6 11,621.7 13,007.6 15,565.8 Depreciation (1,312.5) (1,443.8) (1,588.1) (1,746.9) (1,921.6) Operating cost (2,100.0) (2,310.0) (2,541.0) (2,795.1) (3,074.6) Maintenance cost (350.0) (385.0) (423.5) (465.9) (512.4) Cost of loss (262.5) (288.8) (317.6) (349.4) (384.3) Gross profit 381.5 6,239.1 6,751.5 7,650.3 9,672.8 Platform operating expense (130.0) (169.0) (219.7) (285.6) (371.3) Marketing expense (421.2) (589.7) (648.6) (583.8) (467.0) R&D expense (440.7) (1,066.7) (1,162.2) (1,300.8) (1,556.6) Other expense (1,512.0) (1,663.2) (1,829.5) (2,012.5) (2,213.7) PBIT (2,122.4) 2,750.6 2,891.4 3,467.7 5,064.2 NET Profit (2,122.4) 2,750.6 2,891.4 3,467.7 5,064.2 TheSUMMARY Future of Industry Reasons for Failure Procedure Suggestions for Industry

Advertising C2EstablishB2C ing feedback Lack of Feedback Strategy Strategymechanism Rental customer Rental Rental feedbackProfit + + Users Establish + Consummating Advertisingthe platform Mode Deposit Advertising + Ecosystem Ecosystem Platform Weak StrategyLow Forming Strategy Weak market barrier Rat race pricing market power Enhancing industry power competitiveness Resource integration/Acquisition

！ No way to balance Access Business Better Building sharing Access Platform economy platformand HeavyModel asset Access operation Short Term Long Term Asset Platform Gradual transitionSharing to Heavy asset sharing economy

Case Overview Situation Analysis Strategy Model Solutions & Budget Future of Industry Structure

Case Overview Background Development Competitor (PEST) Outline(Maturity) (Mobike vs ofo) Case Overview Situation Analysis Production Cost Profit Finance Customer (Break-even (Sensitivity 2019 IMA Case Study Student Case Competition (Venn) (BCG) analysis) Analysis) The Optimistic Prospect Situation Analysis Model Contrast Business Model Strategy Strategy OrientationTHANKS——Sharing Economy FOR Rental vs Access vs Shared (SWOT & Canvas)StrategyOrientationOrientation of MobikeYOURor Access Economy? TIME ! TEAM：TYR BACK Advertising2019 Solutions & Budget Solutions & Budget Key Resource C2B2C Sharing Platform Budget Ecosystem Forecast

Forecast Forecast Theoretical Logic Future Outlet