warby parker - mbacasecomp.com › ... › 2015 › 01 › lund-university-case-1-fi… · erika...
TRANSCRIPT
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Lund Consulting Group
Kajsa Anden Otabek Akhunov
Erika Fredriksson Bjorn Hellqvist
Warby Parker - The thrilling future for a sustainable eye wear industry
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Main Challenge
Our Recommendation
“How to maintain growth momentum, without losing track of Warby Parker’s sustainable identity”
“To maintain growth momentum and keeping the core identity by reaching a new segment of
Business-to-Business, using the concept of “Work is fun!””
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| ANALYSIS | CHALLENGE | ALTERNATIVES | RECOMMENDATION | IMPLEMENTATION | SUMMARY |
Agenda
• Analysis
• Challenge
• Alternatives
• Recommendation
• Implementation & Financials
• Risk & Contingency Plan
• Final Words
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| ANALYSIS | CHALLENGE | ALTERNATIVES | RECOMMENDATION | IMPLEMENTATION | SUMMARY |
Who are Warby Parker?
External
VALUE PROP.
• Low price • Sustainability • Hip and smart
RELATIONSHIP
• High customer service
POSITIONING
• Low price, high quality
Internal / External
EXPRESSION
• “The Netflix of eyewear”
CORE
• The most fun and respectful eyewear company
PERSONALITY
• Fun and quirky
Internal
MISSION/VISION
• Sustainable, affordable and hip
CULTURE
• The best for our cause
COMPETENCES
• Disrupted value-chain
• Innovation
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| ANALYSIS | CHALLENGE | ALTERNATIVES | RECOMMENDATION | IMPLEMENTATION | SUMMARY |
Who are the customers buying eyewear?
Design
Quality
Customer service
Price
Availability
Distribution channels
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| ANALYSIS | CHALLENGE | ALTERNATIVES | RECOMMENDATION | IMPLEMENTATION | SUMMARY |
What matters to customers Pe
rceived custom
er ra
/ng
Cri/cal factors
Design
High
Low
Quality Price Customer service
Availability Distribu;on channel
Warby Parker Luxo?ca
• Focused differen;a;on is a key for Warby Parker
• High quality equal to
Luxo?ca at low price • Sustainable compe;;ve
advantage for Warby
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| ANALYSIS | CHALLENGE | ALTERNATIVES | RECOMMENDATION | IMPLEMENTATION | SUMMARY |
Growth potential of Warby Parker
- Current state of Warby Parker and how could this be used?
• Physical resources available within the company • Opportunity to excel within the business model WP already have.
• Human resources • Attractive employer with top-people already on-board.
• Financial resources • The VC run of 2013 create an opportunity to grow.
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| ANALYSIS | CHALLENGE | ALTERNATIVES | RECOMMENDATION | IMPLEMENTATION | SUMMARY |
Current state, what is the future?
Today, WP has started to open up physical stores.
Ø Is this in line with the identity, and is it where to go in the future?
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| ANALYSIS | CHALLENGE | ALTERNATIVES | RECOMMENDATION | IMPLEMENTATION | SUMMARY |
Challenge
Main Challenge
“How to maintain growth momentum, without losing track of Warby Parker’s sustainable identity”
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| ANALYSIS | CHALLENGE | ALTERNATIVES | RECOMMENDATION | IMPLEMENTATION | SUMMARY |
Critical Success Factors for the future of Warby Parker
• Investors • Is the alternative adjacent with the goal of WP’s current investors?
• Brand • Is the alternative coherent with WP’s core identity?
• Customer service • Will it be able to keep up the high level of customer service?
• Distribution • Will the alternative change the current distribution and logistics network?
• Price • Will WP be able to keep the low pricing strategy?
• Sustainability activities • Is the alternative creating further sustainable efforts?
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| ANALYSIS | CHALLENGE | ALTERNATIVES | RECOMMENDATION | IMPLEMENTATION | SUMMARY |
Alternatives
1. Product diversification - Creating a new line of products within a brand new category.
2. New segments
- Reaching out to a new segment of potential customers. 3. Market expansion
- Finding new opportunities in new geographical markets.
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| ANALYSIS | CHALLENGE | ALTERNATIVES | RECOMMENDATION | IMPLEMENTATION | SUMMARY |
Product diversification
- Creating a new line of products within a brand new category.
• Creating a new market through a new product
category.
• Using the core values of sustainability, with the resources already available in the company.
• Develop the customer experience • Reaching beyond books to new products associated with
eye-sight.
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| ANALYSIS | CHALLENGE | ALTERNATIVES | RECOMMENDATION | IMPLEMENTATION | SUMMARY |
Reaching out to new segments
• Start relationships with the business sector.
• Create a substitution program for old glasses.
• Create a new channel to expand the sustainability efforts.
• Use sustainable competitive advantage and maintain core.
- Reaching out to a new segment of potential customers.
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| ANALYSIS | CHALLENGE | ALTERNATIVES | RECOMMENDATION | IMPLEMENTATION | SUMMARY |
Market expansion
• Going further with the existing model of doing business of
Warby Parker.
• Larger volume raise sustainability awareness around the world.
• Find new geographical markets. • Similar markets as the U.S. • Developing countries with high demand.
- Finding new opportunities in new geographical markets.
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| ANALYSIS | CHALLENGE | ALTERNATIVES | RECOMMENDATION | IMPLEMENTATION | SUMMARY |
Vetting the alternatives
Product diversification New segments
Market expansion
Investors
Brand
Customer Service
Distribution
Price
Sustainable activities
Innovation
Critical Success Factors
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Our Recommendation
• New attractive market segment • Differentiated concept into B2B • Further fertilized our sustainable
activities
“To maintain growth momentum and keeping the core identity by reaching a new segment
of B2B using the concept Work is Fun!”
| ANALYSIS | CHALLENGE | ALTERNATIVES | RECOMMENDATION | IMPLEMENTATION | SUMMARY |
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| ANALYSIS | CHALLENGE | ALTERNATIVES | RECOMMENDATION | IMPLEMENTATION | SUMMARY |
Implementation
Open HQ in Silicon Valley
Further enhanced distribu/on channel
Addi/onal sustainable program
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| ANALYSIS | CHALLENGE | ALTERNATIVES | RECOMMENDATION | IMPLEMENTATION | SUMMARY |
HQ in Silicon Valley
Approach B2B e.g. Google, Apple, Tesla etc.
• Release marke;ng B2B campaign
Area of innova;on, sustainable and social entrepreneurship
Large poten;al for future business partners
Key customer segment area
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| ANALYSIS | CHALLENGE | ALTERNATIVES | RECOMMENDATION | IMPLEMENTATION | SUMMARY |
Enhanced distribution channel
Distribu;on channel
Online channel
• Improve virtual showroom
• ‘Warby Parker Class Trip’ concept: • Business
Buyers Bus Club
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| ANALYSIS | CHALLENGE | ALTERNATIVES | RECOMMENDATION | IMPLEMENTATION | SUMMARY |
Sustainable program
ü Con;nue buy one, donate one concept
ü Establish collec;ng and
recycling concept
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| ANALYSIS | CHALLENGE | ALTERNATIVES | RECOMMENDATION | IMPLEMENTATION | SUMMARY |
Sustainable program
Open HQ in Silicon Valley
Further enhanced distribu/on channel
Addi/onal sustainable program
Short term 6m Medium term 1Y Long term >1Y
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| ANALYSIS | CHALLENGE | ALTERNATIVES | RECOMMENDATION | IMPLEMENTATION | SUMMARY |
Implementation costs
Open HQ in Silicon Valley
Further enhanced distribu/on channel
Addi/onal sustainable program
$6m
$0.1m $0.1m
$10m Poten/al upside (20% of WF)
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| ANALYSIS | CHALLENGE | ALTERNATIVES | RECOMMENDATION | IMPLEMENTATION | SUMMARY |
Risks and how to mitigate
• Difficult getting business contacts.
• Complications in establish another HQ.
• Losing the fun and quirkiness going corporate.
• Expansion not being big enough.
• Negative reputation spill-over.
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| ANALYSIS | CHALLENGE | ALTERNATIVES | RECOMMENDATION | IMPLEMENTATION | SUMMARY |
Final Words
Main Challenge
“How to maintain growth momentum, without losing track of Warby Parker’s sustainable identity”
Our Recommendation
“To maintain growth momentum and keeping the core identity by reaching a new segment of
Business-to-Business, using the slogan of “Work is fun!””