Business Model Adopted by Warby Parker - Essay Example

The “one for one” model was a successful business model adopted by Warby Parker (Warby). The entry into the eyewear business proved to be successful considering the small beginning of the business. The idea was born by 4 business minded Wharton graduates led by their CEO Neil Blumenthal. The energy gained popularity for the disruption of the “eyewear industry” as their products were inexpensive. Additionally, the use of “buy a pair, give a pair program” proved to have increased the customer experience of the firm. This caused a huge positive impact that was used in creating a customer base and impacting the social aspect of the business. The idea behind the start of the business was to offer consumers value for their money. This was occasioned by the need to disrupt the eyewear industry as the entrepreneurs felt that the industry was valued at $65 million was ripping off unsuspecting clients. The genesis of the firm was to create its own integrated brand and cut off prices from between $500 -$600 to $95 (Vasudha, 2015). The model effectiveness was also realized owing to the partners' commitment to set the second goal to focus on creating a for-profit firm and create a positive impact across the world. This is essentially an ideal way the firm entered the market. Everyone often desires products of high quality at an affordable price and this was appropriated by Warby (Vasudha, 2015). The crafting of Warby firm took in consideration the customer satisfaction and offered overwhelming customer experience as evidenced by Michael Mathis’s Facebook post. Considering the power of social media, it was appropriate for Anjali to respond to Michael’s post as he was in charge of social innovation and overall counseling. Michael’s comment about the company’s customer focus boosted the company’s market. As Warby developed, it reached 500,000 marks in 2013. As a concentration in creating social impact, the massive sales saw the firm offer eyeglasses to developing countries. This meant that the company had already put over one million people in a pair of eyeglasses. The milestone depicts the company’s concentration in delivering its objectives (Pehrsson, 2007). The one-for-one business model continued to work effectively for the firm. The focus on being an innovative brand also gave the firm support in developing better products and helped with penetration of the market successfully. The attraction in the market can be credited to the superior products, superior customer services, and the prices the firm charged on each pair of frames that were reasonable. However, market watchers even were contemplating if the firm would sustain the business one for one model given the growing market and entry of new competitors. The strength of the model is based on the inspiration from other companies that came before Warby, for example, Ben & Jerry. The intention of the firm to disrupt the order of the ordinary market was to prove that the business can run effectively by being ‘good to the world’ (Vasudha, 2015). This tends to be an ideal way of investing. Out of the ordinary way, the partners wanted to also show that things can be done differently without following the traditional methods other corporations use. Additionally, the notion of going an extra mile and adopting innovative ideas led to Warby becoming the ‘Netflix of eyewear’. Warby’s conversion of an old school bus helped create a larger media buzz and the program called the Parker Class Trip helped the brand get more positive attention (Parker, 2012). As expressed by Neil, over half the traffic was caused by the word of mouth. As a success story, Forbes listed the firm as “25 Most Innovative and Retail Brands”. These can be connected to the model which allowed the adoption of new strategies concentrating on creativity and closing the gaps in the market. Response by consumers illustrates how the firm appreciates consumers by making them feel and appear smart. The power of the internet and social media makes the model strong and reliable for business (Pehrsson, 2007). The slashing of prices to $95 creates a strong tie with the client and connects them to the firm's missions of creating “massive social impact” across the world. This is well-articulated in the core values of the firm concentrating on the one-for-one model, for example, by injecting quirkiness and fun into its clients, the firm is deemed to achieve connections with clients. The mission of the firm is driven by the desire to create a community, hence whenever they are conducting recruitment, they search for a team that would articulate their core values. The process also defines the criteria the firm will use in hiring or firing personnel (Vasudha, 2015). Before the firm's entry into the social entrepreneurship, it was concentrating on selling the product online. As a mitigation measure, it was prompted to open its first physical showroom in 2012. Perhaps it was necessary to ensure the clients feel the tangible connection with the impressive firm. Clients were given five frames to try and shipments were done free of charge. The freedom given to the customer ensures the frames fitted with the face structure of the client and ensure there is maximum satisfaction. The company wanted to practice the acceptance of the ‘web-based delivery model’. The progressive development made Luxottica feel threatened as the firm saw Warby would become a strong global leader in eyewear brands (Vasudha, 2015). 2 Deviating from the online-only strategy proved useful considering the need to dominate the market and full fill the demands of the clients. Six showrooms were opened in 2012 and the next year Warby Parker opened its first retail store in New York. The expansion strategy will make the firm maintain its success as they can cope with competition and met the growing consumer demands. This proved that the company was confident in its ability to sustain the model and be able to progress with the social entrepreneurship (Pehrsson, 2007). Warby creates unique eyewear products. This makes theme favorable with the clients. Additionally, the pricing illuminate the market demands hence large volumes of sale are made. Consequently this will make the firm get surplus profit and be able to maintain its success. The firm’s way of doing things is displayed by the investment in the customer call center. At least 96% of customers’ questions are answered within 15 minutes. The boosts on the social investment saw the firm develop strong gross margins as their performance doubled each year. Clients desire to be associated with the firm was because of the experience and the connection in creating massive social impact as the firm channels proceeds to developing countries vie “buy a pair, give a pair program”. Diversifying into the future is possible for the firm. This is because of the confidence in sustaining the business model of entering into the global market (Vasudha, 2015). Warby Parker  adopts the changing trends in the market. This will help theme sustain its success story as adjustments are often made in its mandate. The attachment people get via the social introduction cannot be erased. Change of its vision to “how can we do more”, displays firms commitment to remain the best firm. The company’s success is credited to the massive response by clients. Word of mouth and social media influence made the company trend. This shows how the social entrepreneurship can make the firm favorite. The indulgence of the firm in diversification gives the clients an opportunity to express themselves. The changes in social entrepreneurship were based on the need to know about the firm's inspiration. The increased curiosity from clients acts as a strength to the firm. The client wants to know more about the founders, the materials of the products, mission, and visions. The stories people would tell about the revelation would be a century story (Vasudha, 2015). Warby Parker wills also sustain its success through excellent customer experience. The consumer experience and customer service are a top priority for the firm (Pehrsson, 2007). This will make the firm able to sustain its social entrepreneurship in future. There is no limiting factor as the firm forges ahead in bringing other innovative ideas in satisfying the clients. Additionally, as expressed by David, the firm is setting mechanisms that will create a long-term plan for the product to exist over 100 years; the longtime plan is to create a lasting relationship with the consumers to be there for a lifetime (Vasudha, 2015). Conclusively, it is imperative to point out the guiding principle the Warby eyewear firm observes. The essence of creating social impact across the board and ensuring the clients get the best out of the products acquired, made the firm to be loved. The penetrations into the wider market will sustsain the success of the firm. The growing momentum of the firm lies in the social entrepreneurship segment. Although this can be hard to manage, the preparedness of the firm displays a committed group that never runs out of ideas. References Pehrsson, A. (2007). The “Strategic States Model”: strategies for business growth. Business Strategy Series, 8(1), 58-63. doi:10.1108/17515630710686897 Vasudha, M. (2015). Warby Parker, One-for-One Model Eye-wear. Amity Research Centers. Read More