Photo AI
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 has already established a reputation for selling glasses at low prices. This might enable them to persuade existing customers to also try contact lenses. Using Ansoff’s product development strategy, it could allow Warby Parker to target new customers. Additionally, innovation in a new product such as contact lenses could enhance their competitive advantage and further strengthen their market position among high income customers.
Step 2
Sell glasses in the low income market – arguments for
Answer
Warby Parker has a distinctive capability stemming from its association with Sightavers, as it designs its own glasses. The low income market represents a massive opportunity, with around 4 billion potential customers who might not be served by other established businesses. Warby Parker’s approach could therefore be very suitable for this market segment due to its low prices and online availability.
Step 3
Recommendations
Answer
Both options present considerable opportunities for growth. However, developing the contact lens option seems more advantageous in the short-term as Warby Parker already has a strong market presence with glasses. This could lead to higher profit margins and leverage their existing brand reputation. Conversely, entering the low income market might lead to greater volume sales long-term, addressing a broader customer base. Therefore, depending on Warby Parker’s strategic focus—either on profit margins or market share—both options have merit. However, the contact lens option is likely to align more closely with their current operational strengths and market recognition.