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THREATS FACED BY WARBY PARKERWarby Parker’s business model represents a small portion of the eyewear industry, which makes the company susceptible to threats. The threats faced by Warby Parker include:New Online competitorsCompetition from well-known brandsOnline CompetitorsOnce the eyewear market begins to discover Warby Parker, this can bring about new competitionfor the company. It is very important that Warby Parker build a brand identity. These competitorsalso include already well-established brands that do not currently sell glasses but have the potential of becoming a threat to Warby Parker. An example of such a company will be TOMS; the company currently offers sunglasses, but not prescription eyeglasses.Competition from Well-known Brands
WARBY PARKER16It is no secret that the eyewear industry is highly competitive. There is already existing competition from other eyewear companies both online and offline. The product sold by Warby Parker only represents a small portion of the eyewear market, which is most dominantly controlled by Luxottica.INTERNAL ANALYSISBUSINESS MODELAs a relatively new company in the eyewear market, Warby Parker uses the vertical integration approach. By vertically integrating its business, Warby Parker is better able to control the cost of their products. Warby Parker being a vertical integrated company gives it a sustainable competitive advantage (SCA). Warby Parker is a company that offers high quality products for a low cost; this gives the company a sustainable competitive advantage (SCA) over their competitors. Another important sustainable advantage of Warby Parker can be found in the company’s domestic distribution channel, which was previously discussed. Some other sustainable competitive advantages of Warby Parker include:Uniform pricingTechnology-savvyBrandUniform Pricing
WARBY PARKER17Since all Warby Parker’s product has the same price, the company’s consumers can focus their attention on the eyewear that best reflects their fashion sense, personality and flamboyant styles. Although Warby Parker’s uniform price is reasonable, it is not extremely low-end. The company’s consumers are generally pleased with the price because they can wear a stylish high quality glasses for about one-fifth the market cost. Technology-savvyWarby Parker opens its stores in selective, high-end locations, which is a crucial component theirbusiness model. In order to keep the company’s expenses down, maximize convenience and stay true to its young audience. Warby Parker has integrated technology into its operations. In their stores, Warby Parker’s customers can pay for their purchase on iPads anywhere in the space. Thecompany’s website is extremely customer-friendly and enables users to save all their information– including prescription details – so they can easily order new glasses remotely.