USE ONLY INFORMATION BELOW TO WRITE A PARAGRAPH HAVE 200 WORDS TO ANSWER THIS QUESTION, Discuss Information for Become The Middleman (AKA The "Warby Parker Model), Become A Marketplace Become The Middleman (AKA The "Warby Parker" Model) Warby Parker had the simple idea back in 2010 we all wish we would have thought of first. They decided to enter the eyewear market, noticing that the market was monopolized by Luxottica, who basically control the price of designer eyewear. With the price bar set high, Warby Parker saw huge opportunity in the market, and realized that because most brands sold the rights to huge companies like Luxottica that drastically increased their manufacturing and design costs. So what was the logical solution to this problem? Become the middleman of course! With the ability to significantly reduce the price of its product, along with the cool factor and social good elements weaved into the company's brand, they were able to capitalize by providing their consumers with large savings. Now that's what I call a win-win! Why It Works: Becoming the middleman gives startups a serious pricing advantage, and saves consumers money. Who doesn't love that? This model also gives a startup much more control over the quality of the product or service, and gives them immediate feedback from users to continuously develop a better product. This model also allows for better control over contracts and negotiations with distributors, as well as building stronger relationships with suppliers. Others Who Have Followed: NYC based startup Casper is using this model to change the way mattresses are bought. Scarosso is using this model in the shoe market. Brideside has successfully grown using this model for bridal party retail, and Audicus is changing the market with this model for hearing aids. Become A Marketplace One of the ever growing business models that continues to prove highly effective is becoming a marketplace. This means you are simply bringing supply and demand together. AirBNB reigns as one of the top success stories to implement this business model well. I'm guessing you thought renting rooms from random people's homes via the internet was pretty creepy when you first heard the idea. We did too, but the AirBNB founders believed in the new "sharing economy. They were convinced that the supply and demand was there, and since have convinced over 20 million+ strangers to provide and rent rooms from one another. Uber has also seen explosive growth using the same mentality to create a marketplace where strangers rent rides from strangers. Providing a service is out, and becoming the marketplace is in the ever growing e-commerce sector. Why It Works: There are several advantages to using this type of business model. First, one of the greatest benefits is having zero to little overhead, and no inventory. You can get a swanky office space if you want, or you can run the company virtually. When you manufacture a product, you take on a lot more risk and pressure to make sure that inventory is sold. When you are the marketplace, instead of worrying about manufacturing costs, you are simply bringing the sellers to the buyers (and vice versa) and facilitating a transaction, taking a small slice of the pie from each transaction. You give seller's a place to make a profit and reach consumers, while customers are happy to find exactly what they want, usually at a discounted price. Other's Who Have Followed: Amazon is one of the leaders of this business model, creating a marketplace for those who wish to sell items, and those who wish to buy them at a better price. Raise is a a C2C gift card market, that a supply of discounted gift cards from sellers who would rather have the cash to spend as they please. Beast is another example of a marketplace that connects high level consultants for the millennial era with clients looking to outsource unmet needs in their business