Question 4: Select one of the three businesses in the feature, and conduct online research to to better familiarize yourself with the business and its business model. Evaluate the four separate components ( core strategy, strategic resources, partnership network, and customer interface) of its business model and how the separate components reinforce one another. On a scale 1 to 10, how strong of a business model does the company have? Explain your answer.
The business we chose is Warby Parker. We have evaluated its business model in terms of four components, consisting of core strategy, strategic resources, partnership network, and customer interface and these are our findings.
A company’s core strategy refers to how a firm competes amidst of its competitors. A company’s mission statement, product or market scope and basis of differentiation play a huge role in order for a company to thrive in the business world. Warby Parker has a very promising mission; Eyewear with a purpose. “Almost one billion people worldwide lack access to glasses. This means that 15% of the global population cannot effectively learn or work - a problem that Warby Parker is determined to address. We've partnered with non-profits like VisionSpring to ensure that for every pair of glasses sold, a pair is distributed to someone in need. We believe that everyone has the right to see”. This is Warby Parker’s mission whereby we could see that they have identified the gap in the industry which is the need of acquiring affordable glasses by the society in order for them to perform a task more effectively and efficiently. Therefore, Warby Parker became an alternative for those people who would want to own stylish yet affordable glasses for themselves and at the same time they are given the privilege to do some charity by purchasing from Warby Parker.
The next aspect of core strategy is the product or market scope. According to Warby Parker’s co- founder, Neil Blumenthal, Warby Parker has currently expanded their business into Canada and soon they will invade the international market. Warby Parker does research regularly regarding their market and product scope and this enables them to reach their targeted market more precisely and easily. The diagram below shows the market scope of their products according to the genders, and regions of America. They have also done thorough analysis regarding their targeted market in each specific region of the country according to the taste of the local people there. For instance, Nevada is the only region from east of America which records the highest number of orders for the Huxley frame meanwhile, majority of people in the east of America feels that the Roosevelt frame suits their preference better. Besides that, based on their research, they have come to known about the fact that, people from the west of America such as Maryland seems to have the worst eyesight problem and this enable Warby Parker to realize the higher demand for optical eyeglasses compared to sunglasses at these regions and this enable them to take necessary steps to capture the demand from this targeted market.
Warby Parker has worked very hard on the basis of differentiation. They did not want to be the overpriced, ordinary eyewear whereby people would be so disturbed just by looking at their range of prices. Instead of that, Neil Blumenthal and his friends chose to disrupt the optical industry by offering people a recognizable brand of eyeglasses at a very affordable price. Warby Parker claim themselves to be very different compared to their competitors in three ways. First, they create their own design which collides with the taste and preference of their customers. They are independent designers who don't partner with licensing companies who control the market and keep prices high. They take great pride in...
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