PBA WRITTEN ASSIGNMENT.pdf - University of Navarra Principles of Business Administration Company Analysis Report WARBY PARKER Written by V\u00edctor

PBA WRITTEN ASSIGNMENT.pdf - University of Navarra...

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University of Navarra Principles of Business Administration Company Analysis Report WARBY PARKER Written by: Víctor Tarruella, Pablo Urbiola, Álvaro Urdiales, Andrés Ureña, Ana Lucía Valencia, Diego Vallejo, Ayrton Vargas, Kurt Viteri & Doménica Yánez. April, 2019
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INDEX MANAGEMENT SUMMARY 1 INTRODUCTION 1 COMPANY PRESENTATION 2 I. PRODUCT & TARGET 2 II. MISSION, VISION & VALUES 2 III. SHAREHOLDER STRUCTURE 3 COMPANY ANALYSIS 4 I. SWOT 4 II. PORTER’S FIVE FORCES III. PESTLE IV. 7 P’s OF MARKETING V. VALUE CHAIN VI. STRATEGIC FITS ANALYSIS OF THE STRATEGY CONCLUSIONS AND RECOMMENDATIONS BIBLIOGRAPHY
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MANAGEMENT SUMMARY The purpose of the following report is to serve as a case study of a company in order to analyze its strategic development and functioning. In order to do so, the company Warby Parker was set as subject of analysis, and certain key aspects were taken into consideration, specifically its organizational situation and key strategic issues. Further on, the company was analyzed through various tools, both through internal and external methods, such as SWOT, PESTLE, and Value Chain analysis among others. Finally, the company strategy was critically evaluated and further recommendations were provided. INTRODUCTION Warby Parker (WP) is an eyewear company founded in the year 2010 by four college students; Jeffrey Raider, Andrew Hunt, Neil Blumenthal, and David Gilboa. Its main objective was simple from the beginning: to create fashionable eyewear at affordable prices 1 . The latest because the eyewear care industry is one that in 2016 generated 110 billion USD and that is projected that by 2024 that number will rise to 180 billion USD. Yet it is controlled by a dominant player that has heavily inflated prices, Luxottica. Luxottica is an Italian company that is vertically integrated, meaning that they control the entire production process for eyeglasses, from the frame manufacturing to the sale in retail stores. In 2016, a 49 billion 2 USD merger with the French Essilor, allowed to also control the glass industry, acquiring the remaining part to control every single aspect in the industry. It can be concluded that the eyewear industry is heavily monopolized and thus has high barriers to entry, competition is low, and profit margins are high. 1 Warby Parker: Our History 2 Reuters
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COMPANY PRESENTATION I. PRODUCT & TARGET Warby Parker up to the year 2018 created through innovative, disruptive thinking and a clear marketing strategy and target: a 1.75 billion 3 USD company, headquartered in New York, that produces eye and sunglasses, delivers freely five try out frames and measures a customer’s pupillary distance (PD) online and does all at an affordable price starting at $95. Its main product, as mentioned before are eyeglasses that are affordable, fashionable, and high quality made. They target millenials (mainly college students) as they market themselves online, though by now they have also several retail stores across the United States and Canada. With this they have effectively taken out of the equation the “middleman” hence, as there is no intermediary company between producer and final consumer. By 2018, the
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