75%(4)3 out of 4 people found this document helpful
This preview shows page 1 out of 1 page.
IS and Warby Parker It is an online eyewear retailer that was founded in 2010. The idea for the company was conceived when the firm's founders (MBA students at the time) observed that glasses—uncomplicated, easily breakable, and mass-produced—were typically quite expensive ($500 or more, for example). Significantly, the founders were convinced they knew the reason why glasses cost so much. They perceived the optical industry as an oligopoly, meaning that a small number of companies dominate the business and are making large margins.Consider, for example, Luxottica (), based in Milan, Italy. This company owns LensCrafters, Pearle Vision, Sunglass Hut, Ray-Ban, Oakley, and Oliver Peoples, in addition to the optical shops in Target and Sears. In addition, as a result of a series of license agreements, Luxottica manufactures eyewear for more than 20 top brands, including Chanel, Burberry, Prada, and Stella McCartney. Warby Parker's founders realized that Luxottica had “created the illusion of choice,” when in fact they practically monopolized the industry.