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Evaluate these two options and recommend which one is most likely to achieve Warby Parker’s main corporate objective - Edexcel - A-Level Business - Question 1 - 2019 - Paper 2
Question 1
Evaluate these two options and recommend which one is most likely to achieve Warby Parker’s main corporate objective. Warby Parker's main corporate objective is to ... show full transcript
Worked Solution & Example Answer:Evaluate these two options and recommend which one is most likely to achieve Warby Parker’s main corporate objective - Edexcel - A-Level Business - Question 1 - 2019 - Paper 2
Step 1
New range of contact lenses – arguments for:
Answer
Warby Parker already has a good foundation for selling glasses at low prices; this may enable them to persuade customers to also buy contact lenses. Ansoff would classify this option as product development, allowing Warby Parker to target new customers using their established reputation. Additionally, innovation in a new product such as contact lenses may provide a source of distinctive capability, enhancing their appeal among high-income consumers.
Step 2
Sell glasses in the low income market – arguments for:
Answer
Warby Parker's existing association with Sightgivers gives them a unique capability as they design their own glasses. The low income market has a vast potential customer base of 4 billion people, which could significantly increase their market share. This approach may also enhance Warby Parker’s ethical branding and market reputation, as they are currently not served by other optical businesses.
Step 3
Possible recommendations:
Answer
The contact lens option might yield a higher immediate growth because of Warby Parker's trusted reputation for selling quality products at low prices online. This strategy could bolster their existing customer base in the high-income market.
On the other hand, entering the low-income market represents a substantial growth opportunity, targeting a segment of the population that is largely overlooked. However, VisionSpring is already well-established in this area, which may pose obstacles.