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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. - New range of contact lenses – arguments for:... 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's establishment of a new range of contact lenses can leverage their existing reputation for affordability and quality. The low price positioning can attract current customers who are already satisfied with their glasses, thereby increasing customer loyalty. Additionally, this option is classified as product development under Ansoff's matrix, which suggests it could target both existing and new customer segments, enhancing brand recognition. This innovation could serve as a competitive advantage, bringing distinctive capabilities to Warby Parker, which can be particularly appealing in a market where consumers often prioritize quality and affordability.
Step 2
Sell glasses in the low income market – arguments for:
Answer
Targeting the low-income market could present a substantial opportunity for Warby Parker, given the vast potential customer base of approximately 4 billion people. The market development strategy would allow Warby Parker to expand its outreach while maintaining its ethical branding through the association with Sightgivers, promoting social responsibility. This approach aligns with the mission of providing affordable eyewear, thus potentially transforming the lives of many individuals. Furthermore, as the market is currently less saturated with competitors offering similar propositions, Warby Parker could establish itself as a key player in this segment, leveraging its low prices and online accessibility.