Braze, Inc.’s Platform Expansion and International Growth Fuel Increased Complexity in the Face of Intense Competition

Over the past few years, Braze, Inc. (ticker: BRZE) has experienced rapid growth and expansion, presenting new challenges and opportunities for the company. As the demand for their platform continues to grow, they must manage the increasing organizational and operational complexities efficiently to stay ahead of their competitors.

Braze, Inc., a leading customer engagement platform provider, has recently seen a significant uptick in the number of customers, engagements they enable, and the amount of data their infrastructure supports.

This growth is primarily due to the increasing demand and adoption of their platform among large enterprise customers.

However, with growth comes challenges.

One such challenge facing Braze is the management of their resources and execution of their business plan. As the company’s customer base grows, they will need to expand their account management, customer service, and other personnel to maintain their high-level customer service standards. Failure to manage growth could result in delays in launching the platform, declines in quality, difficulties in updating the platform, or increased technical support costs, all of which could adversely impact their business.

Additionally, Braze’s international expansion and increasing customer base have added complexity to their operations.

They now rely on third parties to increase the breadth, capability, and depth of capacity for delivering onboarding services to customers. If customers are not satisfied with the quality of work performed by third parties or with the solutions provided, Braze could incur additional costs to address the deficiency, diminishing the profitability of the customer relationship and potentially damaging the company’s reputation.

Another challenge for the company is the need to attract and retain highly skilled employees in a highly competitive market.

As a result of their rapid expansion, Braze is continually faced with the challenge of recruiting experienced software engineers and senior sales executives. Competition for these employees is intense, and the company may face difficulties in hiring and retaining qualified personnel.

As a public company, potential candidates may not perceive Braze’s compensation package favorably compared to its competitors. It can also be challenging to identify and implement necessary changes to its recruiting techniques and approach, further complicating the hiring process. With the implementation of their hybrid work model called “The Way Braze Works” in September 2022, the company may also face challenges in identifying, hiring, and training new personnel in a remote workforce setting.

While these challenges may pose risks to the business, they also present opportunities for the company.

By effectively managing these organizational complexities, Braze could further solidify its leadership position in the customer engagement platform market. As the company continues to expand its international operations and adapt to the increasing demands of its large enterprise customers, it must invest in improving its operational, financial, and management controls, as well as its reporting systems and procedures.

In conclusion, Braze, Inc.’s continued success will depend largely on its ability to manage the increasing complexities that come with rapid growth and expansion. By maintaining high customer service standards, investing in employee training and retention, and effectively managing operational challenges, the company can continue to thrive in the competitive customer engagement platform market and maintain its position as a leading player in the industry.

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