Warby Parker is an American
online retailer of prescription glasses and sunglasses, based in New York City.
Warby Parker primarily sells products through its website, but also features
retail locations across the U.S. and Canada.
If
you are not familiar with this retail store, visit their website https://www.warbyparker.com/ (Links to an external site.)
After reading case 3 (PDF File Attachment) answer the following
questions:
1. In what ways can a newer,
smaller competitor “punch above its weight” by taking advantage of the
Internet? How can the Internet be applied as a tool to help businesses
avoid some of the costs associated with doing business following more
conventional or “old school” approaches? How do you see the balance of
power in industries like the eyewear industry shifting as customers become more
comfortable buying eyewear online?
2. What impact does Warby
Parker’s decision to donate a pair of eyeglasses for every pair purchased from
them have on customers’ perceptions of the company? How does Warby
Parker’s focus on being a great place to work influence how the company is seen
in the market?
3. Problem Solving. As an operations management
consultant, you’ve been contracted to help a large, traditionally configured
clothing company – Marquee Clothes – to become more Internet enabled and
competitive in light of customers’ shopping habits, attitudes, and
expectations. The company has a well-established supply chain
infrastructure, currently has more than 50 retail locations, and has been in
business for more than 20 years. Over the last several years, with
increasing numbers of mall closings, the business has had to shut several of
its stores and is seeing much of the foot traffic that traditionally was its
bread and butter start to decline as well. Sales have been off the last
three quarters, and the 56-year-old owner of the privately held company is
concerned that she’ll have to close more stores if things don’t turn
around. She’s been convinced by her college-age daughter that in order to
compete, the company is going to have to undergo a makeover and become a
twenty-first-century player, with a fully fleshed-out approach and
strategy. What should she do? What are some of the first things
that you’d advise? What steps need to be taken to help take Marquee
Clothes fully into the twenty-first-century?
4. Further Research. What’s happening now with Warby
Parker? What kinds of things is the billion-dollar company doing to stay ahead
of other competitors and make headway in the eyewear market? What kinds
of steps has Luxottica taken to defend itself against Warby Parker’s disruptive
tactics?
