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In terms of Porter’s five forces, Warby Parker faces little Threat of new competition. This is due to its holding of a large portion of the already saturated eye wear market and that new competitors must expend large amounts on marketing and production technologies to get an almost unsustainable foothold in the market. In terms of the Bargaining power of suppliers, the company orders its own materials from Italy and has them manufactured in the same Chinese factories as its competitor Luxottica, there is great competition amongst these factories which in turn drives their bargaining power down. The Bargaining power of buyers is also very low, as the eye-wear market is very large with many willing buyers and little choice outside of Warby Parkers extensive range and quality of frames. Also, the Threat of substitution is very low, with their comparatively lower online prices and high-quality frames, substitutes become inevitably unfeasible. Finally, the forces of Competitive rivalry are low, with Warby Parker’s at home vision test, the company essentially bypasses competition with optometrists by directly providing prescriptions online and subsequently selling their frames, guiding customers a transaction.

(6) The strengths of the focal company in terms of marketing capabilities, unique brand positioning, and innovativeness

The marketing capabilities of the company have grown since their online inception. The introduction of physical stores to try on glasses and make in store purchases was simply a marketing ploy to increase online sales in particular markets. The stores not only generated their own revenues but increased the brand’s awareness and recognition amongst customers. Also, Warby Parker have successfully positioned themselves as more than just a glasses seller. By implementing their home vision tests and integrated data selling strategies, consumers feel understood by the brand. Two Key innovations that underpinned their success include their home-try-on program. This plan devised by the founders gave customers greater comfortability when purchasing eye wear online. Secondly, three years after their online success they started opening physical stores, which turned buying glasses into a unique and fun fashion experience....