This is a classic case question but it goes deeper than it looks.
Start by acknowledging that WeWork's failure was multi-faceted, but focus on the core product and business model flaws. Structure your answer around unit economics, product-market fit, and strategic missteps, then tie it back to lessons for Airbnb's product strategy.
Pro tip: Emphasize that WeWork's fundamental issue was a mismatch between its product (flexible office space) and its valuation as a tech company, leading to unsustainable growth. Show how you'd apply this lesson to evaluate product bets at Airbnb.
Clarify that WeWork's failure was not a single event but a gradual collapse due to unsustainable economics and governance issues. Set the scope by focusing on the product and business model.
Discuss how WeWork's long-term lease liabilities were mismatched with short-term revenue from memberships, creating negative unit economics. Highlight the lack of scalability and profitability.
Examine whether WeWork solved a real problem for a large enough market. Note that while flexible office space had demand, the market was niche and highly competitive, with low barriers to entry.
Cover overexpansion, misclassification as a tech company, and governance failures (e.g., Adam Neumann's leadership). Explain how these amplified the core issues.
Relate the analysis to Airbnb's context: importance of sustainable unit economics, clear product-market fit, and disciplined expansion. Suggest how these principles guide product decisions.
AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.