Chapter 7; Case 3 - Warby Parker

HELP ME ANSWER THE HIGHLIGHTED QUESTIONS!

Eyeing the Future Topic: Opportunities, en- trepreneurial ideas Fanatically focusing on execution and brand. That's how analysts describe the strategic ap- proach of Warby Parker, a New York City eyewear startup that's quickly disrupting the old- fashioned eyewear business. Co-founded in 2010 by David Gilboa and Neil Blumenthal (who are also now co-CEOs), Warby Parker has shown itself to be a fierce and successful competi- tor. Why? "One word, deliberate."46 They are disciplined about their brand, but embrace and exploit technology in disrupting the staid and conservative way eyewear has traditionally been sold. So what does Warby Parker do? Future Vision To appreciate what Warby Parker is doing, we need to look back at how the idea for the com- pany came about. After leaving a $700 pair of Prada frames in a seat-back pocket on a flight while backpacking in Southeast Asia, Gilboa began questioning why he had a $200 iPhone in his pocket that had the technology to do a number of really cool things and yet replacing that pair of glasses-a technology that's hundreds of years old-would cost way more than that $200 iPhone.47 Like many other entrepreneurs, he believed there had to be a better way. His research exposed an industry that was a virtual monopoly with a very powerful eyewear sup- plier, thus the reason for the high-priced eyewear. Gilboa and a friend, who were both in Wharton's MBA program, weren't even sure they could take on such a powerful competitor until they teamed up with Blumenthal (also at Wharton). Blumenthal was rumored to know "more than pretty much anyone else in the world about how to work outside of the traditional eyeglass-supply chains."48 Well, it didn't take long for the crew to start selling eyewear online from a Philadelphia apartment. Today, Warby Parker designs and manufactures its own trendy, stylish frames and sells them directly to consumers over the Internet for an affordable $95 a pair. That price also includes prescription lenses, shipping, and a donation to Vision Spring, a not-for-profit where Blumen- thal served as a director. The company has begun opening brick-and-mortar stores, with 63 open currently. Other growth plans include expanding their product mix, diversifying their frame selection into areas such as kids' frames and glasses with progressive lenses, and ex- ploring revolutionary technologies that would do eye exams online. In May 2017, the compa- ny launched a Prescription Check app in which users can complete virtual eye exams at home. It also opened its first optical lab where it cuts the lenses to fit the frames.49 Warby Parker was named Fast Company's Most Innovative Company of 2015 and was hon- ored as a finalist in the 2014 USA Today Entrepreneur of the Year. 50 Another thing Warby Parker does is its Buy a Pair, Give a Pair" program, which benefits visually impaired individu- als in developing countries. Meanwhile, to carry on the company's success, Gilboa and Blu- menthal will continue being disciplined in all they do, fanatically focusing attention on execu- tion and brand. That future vision should help Warby Parker continue on its successful journey Discussion Questions 7-24 Does Warby Parker fit the definition of an entrepreneurial venture? Explain. 7-25 What steps of the entrepreneurial process can you identify in this story? Discuss. 7-26 Look at the seven sources of opportunity. Which one(s) most closely describe what the founders recognized? Explain your choice(s). 7-27 What competitive advantage(s) do you think Warby Parker has? What competi- tive challenges do you think the company faces? 7-28 What potential issues might Warby Parker face as it continues to grow? How could the company best prepare itself for addressing these issues? Eyeing the Future Topic: Opportunities, en- trepreneurial ideas Fanatically focusing on execution and brand. That's how analysts describe the strategic ap- proach of Warby Parker, a New York City eyewear startup that's quickly disrupting the old- fashioned eyewear business. Co-founded in 2010 by David Gilboa and Neil Blumenthal (who are also now co-CEOs), Warby Parker has shown itself to be a fierce and successful competi- tor. Why? "One word, deliberate."46 They are disciplined about their brand, but embrace and exploit technology in disrupting the staid and conservative way eyewear has traditionally been sold. So what does Warby Parker do? Future Vision To appreciate what Warby Parker is doing, we need to look back at how the idea for the com- pany came about. After leaving a $700 pair of Prada frames in a seat-back pocket on a flight while backpacking in Southeast Asia, Gilboa began questioning why he had a $200 iPhone in his pocket that had the technology to do a number of really cool things and yet replacing that pair of glasses-a technology that's hundreds of years old-would cost way more than that $200 iPhone.47 Like many other entrepreneurs, he believed there had to be a better way. His research exposed an industry that was a virtual monopoly with a very powerful eyewear sup- plier, thus the reason for the high-priced eyewear. Gilboa and a friend, who were both in Wharton's MBA program, weren't even sure they could take on such a powerful competitor until they teamed up with Blumenthal (also at Wharton). Blumenthal was rumored to know "more than pretty much anyone else in the world about how to work outside of the traditional eyeglass-supply chains."48 Well, it didn't take long for the crew to start selling eyewear online from a Philadelphia apartment. Today, Warby Parker designs and manufactures its own trendy, stylish frames and sells them directly to consumers over the Internet for an affordable $95 a pair. That price also includes prescription lenses, shipping, and a donation to Vision Spring, a not-for-profit where Blumen- thal served as a director. The company has begun opening brick-and-mortar stores, with 63 open currently. Other growth plans include expanding their product mix, diversifying their frame selection into areas such as kids' frames and glasses with progressive lenses, and ex- ploring revolutionary technologies that would do eye exams online. In May 2017, the compa- ny launched a Prescription Check app in which users can complete virtual eye exams at home. It also opened its first optical lab where it cuts the lenses to fit the frames.49 Warby Parker was named Fast Company's Most Innovative Company of 2015 and was hon- ored as a finalist in the 2014 USA Today Entrepreneur of the Year. 50 Another thing Warby Parker does is its Buy a Pair, Give a Pair" program, which benefits visually impaired individu- als in developing countries. Meanwhile, to carry on the company's success, Gilboa and Blu- menthal will continue being disciplined in all they do, fanatically focusing attention on execu- tion and brand. That future vision should help Warby Parker continue on its successful journey Discussion Questions 7-24 Does Warby Parker fit the definition of an entrepreneurial venture? Explain. 7-25 What steps of the entrepreneurial process can you identify in this story? Discuss. 7-26 Look at the seven sources of opportunity. Which one(s) most closely describe what the founders recognized? Explain your choice(s). 7-27 What competitive advantage(s) do you think Warby Parker has? What competi- tive challenges do you think the company faces? 7-28 What potential issues might Warby Parker face as it continues to grow? How could the company best prepare itself for addressing these issues