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quality product as Luxottica to the table, but at an affordable price. TOMSThe brand TOMS poses as another direct competitor to Warby Parker. The company promotes some of the same business strategies as Warby Parker. TOMS and Warby Parker both market the buy one pair, give one pair strategy; having similar strategies makes it difficult for Warby Parker to compete in the market place. Consumers will be torn between the two companies when trying to buy eyewear products, because the need to help others is a contributing factor in their purchase decision.Start-up Competitors in the Eyewear MarketWhen Warby Parker was founded in 2010, a lot of start-up companies observed how the company was gradually dominating the eyewear industry and decided to emulate its business model. Some of the start-up companies that follow Warby Parker business model include: Lookomatic, Classic Specs, Mezzmer and EyeFly. Lookomatic, Mezzmer and EyeFly follow their model by using ecommerce to provide quality prescription eyewear starting at under $100 but they do not offer the give-back incentives. Classic Specs is the other start up and they pose a greater threat because their model very much mimics Warby Parker’s. Classic specs provides product similar to Warby Parker’s and donates 6% of total purchases price from every purchase to New Eyes for the needy. The advantage that they have over Classic specs is that although Warby Parker mostly advertises by word of mouth, they have also managed to gain more access to the broader masses though media attention.
WARBY PARKER7Market/Submarket AnalysisSince the year 2009, the eyewear market has continuously increased annually (Statista, 2014). The eyewear market is made up of four main categories, which are: prescription glasses, sunglasses, contacts, and over the counter readers. In 2014, over 95.9 million sunglasses were sold, out of the 95.9 million; only about 4.9 million units were sold online. The eyewear market in which Warby Parker competes in represents a small percent of the industry. The small focus on this market is both a threat and opportunity for Warby Parker. It is a threat because Warby Parker has such a narrowly defined market that any change in the market, and/or consumer preference can be detrimental to the company’s success. It can also be seen as an opportunity, because Warby Parker can identify additional market. This additional market will be made up of consumers who buy prescription glasses, consumers who purchase their eyewear at a brick and motor location, and consumers of different age group that prefer low cost, fashionable, hip and trendy eyewear. Target and Potential MarketsWarby Parker’s brand is known to target the younger generation. In order to successfully expand their business worldwide, Warby Parker should target countries that have high Gross Domestic Product (GDP) and strong economies. A country’s GDP can be valuable to Warby Parker because it shows the country’s per-capita welfare, it compares living condition in the country, and also how resources are used across the country. Since Warby Parker is an American eyewear company, it should focus its attention on countries that have some similarities with the United States; either cultural resemblances or similar business practices.