Key Challenges of Progressive and Bifocal Lenses:
WARBY PARKER 24 Progressive lenses are commonly worn by the older generation. Warby Parker is a company that usually targets the younger generation; therefore, the company must be willing to expand its marketing efforts to target this maturing group. Compared to normal lenses, Progressive and Bifocal lenses are more complicated to fit and they have higher return rates among consumers. Warby Parker will be faced with the challenge of expanding its market to a new target segment without overstretching their resources and diverting attention from its core competencies. EXPAND THE PRODUCT LINE AND TARGET MARKET Warby Parker’s brand currently meets the needs of only one style and segment. The professional segment for budget fashion eyewear is completely untapped. Warby Parker’s current target segment is not likely to have significant growth in the near future, so in order to expand, Warby Parker needs to target new segments. Modern Professionals tend to be very fashion conscious. Professional glasses are complementary products; this provides low cannibalization. Key Challenges of the Product Line and Target Market Warby parker is limited to design with bulky, semi-transparent frames because all of their glasses are constructed from cellulose acetate. In order to produce professional frames, Warby Parker must choose to hypoallergenic materials. Warby Parker’s current design team does not have the adequate experience in creating professional frames. Other Suggested Strategies
WARBY PARKER 25 Warby Parker should consider accepting their customer’s insurance as a payment method. Warby Parker should target college students by creating a program that will give students textbook credit whenever they purchase an eyewear product. FINANCIAL ANALYSIS Financial Resource As of 2011, Warby Parker generated over $11 million in revenue; this reflects the company’s thoughtful decisions, good planning and hard work. In order to grow their company, Warby Parker accrued some debts through investing. In total, Warby Parker borrowed $13,500,000 in 2011. The company needed the money so that they can increase their production capacity and also to be able to supply their rapidly growing consumer demand. The loan was beneficial in two ways to Warby Parker. First, the money was invested into the company maximizing their manufacturing process, and second, they started a credit history that will enable them to acquire future loans. Finance In order to get expected results, Warby Parker needs to invest more time and money into its company. Warby Parker needs to have enough cash flow to support its domestic business operations and the expenditures needed to export its product. In particular, Warby Parker needs to have enough money to pay for its transportations and logistic services. Warby Parker needs to budget spending more money on advertisement, employee training and package design to satisfy the needs and tastes of their consumers.
WARBY PARKER 26 Profit Warby Parker is not a publicly traded company; therefore, there is no obligation on the company to show their financial statements. Warby Parker does not reveal its profit information in order to protect its business practices and strategies.
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