1) When Warby Parker was born the market was being ruled by a single company whi
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Question
1) When Warby Parker was born the market was being ruled by a single company which had a monopoly in the market. This company was selling stylish prescription glasses at prices ( up to $700 or more each) which was very high. So, to counter this Warby Parker started designing and manufacturing glasses in-house, and started selling those stylish prescription glasses at $95 each. This was very low as compared to the competitors price. People who were reluctant in buying a pair of glasses because of the high price could now afford it at a price of $95. Not only this they gave an option to the customers to try before they buy, five pairs for five days for free. Apart from this Warby Parker was giving one pair of glasses to the developing nation on every single sale. So, these were the reason for the success of Warby Parker.
2)To take a task of challenging the giants in the market it requires a character, which Warby Parker exhibited in their entrepreneurial startup. It was their strength to compete against a company which had a monopoly in the market. It was their strength to sell the glasses at such a low profit margin and on top of that to distribute one to the developing nation. These all exhibit the classic strength of an entrepreneurial startup.
3) Initially when Warby Parker started their business was totally online which was giving them an option to keep the prices low, but as they are planning to open the retail stores will they be able to still maintain that price. What if the competitors also bring the prices down and start selling at Warby Parker price. The last challenge is that the founder investor might sell the the competitors if they are offered very good price.
Explanation / Answer
ADMG201.A01_1179DiscussionsDiscussion Board Ten: WARBY PARKER DOES GLASSES ITS OWN WAY
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due Nov 29
Discussion Board Ten: WARBY PARKER DOES GLASSES ITS OWN WAY
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Post at least three paragraphs answering the three discussion questions below. Respond to at least two of your classmates following the 2+2 rule described in the Discussion Board Instructions in the Introduction Module.
DB 10 - WARBY PARKER DOES GLASSES ITS OWN WAY
A few years ago, four Wharton business students bonded over the high price of stylish prescription glasses (up to $700 or more each). When they discovered it was a single company’s near-monopoly over the optical industry that led to steep prices, the idea for Warby Parker was born. The startup’s premise is simple: By designing and manufacturing glasses in-house, and doing without the traditionally high profit margins of the industry, Warby Parker can sell designer-style prescription eyeglasses for $95 each. It offers online customers a try-before-you-buy option—five pairs for five days at no cost. Additionally, for every pair bought, another is distributed to developing nations. By 2014, Warby Parker announced it had donated over 1 million pairs of eyeglasses, and the company has been valued at over $300 million.
Some analysts attribute Warby Parker’s success to its unique culture and branding approach; it goes beyond simply selling eyeglasses to incorporate quirky and subtle counterculture elements into everything it does. Others find the company to be an example of “good old-fashioned amazing execution.” From customer approach to employee treatment, the company is doing good business.
However, others are voicing concerns. The company is still in the entrepreneurial growth stage, meaning it survives on investment capital and has not yet reached self-sufficient profitability. Is Warby Parker’s idealistic vision truly viable? Another concern is the possibility of acquisition, an option often sought by entrepreneurial investors who want a quick return on their money. Will Warby Parker end up being bought out by the same high-priced company it set out to challenge initially? These questions will define the company’s future as it transitions into a more mature stage of growth.
Discussion Questions
1.
Why has Warby Parker been successful?
2.
Does Warby Parker exhibit any of the classic strengths, or weaknesses, of an entrepreneurial startup?
3.
What are some challenges that Warby Parker will likely face as it matures as a company
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