Warby Parker was supposed to disrupt the eyewear business by selling glasses directly to customers via the web. However, Warby Parker has had to pivot its strategy to opening stores across the U.S., including in our own Prudential Center. If you ask ChatGPT what are Warby Parker’s strengths, you get a list of wonderful-sounding attributes:
Warby Parker is an American eyewear company known for its innovative business model and direct-to-consumer approach. Here are some of Warby Parker’s strengths:
Affordable Pricing: Warby Parker offers high-quality eyewear at affordable prices. By designing their frames in-house and selling directly to customers online and in their stores, they eliminate the middleman and traditional retail markups.
Stylish Designs: Warby Parker is known for its trendy and fashionable eyewear designs. They offer a wide range of frame styles, including both classic and contemporary options, appealing to a broad customer base.
Home Try-On Program: One of Warby Parker’s notable strengths is its Home Try-On program. Customers can choose up to five frames online and have them shipped for free to try on at home. This convenient and risk-free process allows customers to select the frames that best suit their preferences and face shape before making a purchase.
Socially Conscious Mission: Warby Parker has a strong social mission. For every pair of glasses sold, the company donates a pair to someone in need through its “Buy a Pair, Give a Pair” program. This commitment to social responsibility has resonated with customers and contributes to the brand’s positive reputation.
Seamless Online Shopping Experience: Warby Parker provides a user-friendly and seamless online shopping experience. Their website offers a virtual try-on feature, detailed product information, and a simple ordering process, making it easy for customers to find and purchase their preferred eyewear.
Physical Store Presence: In addition to their online presence, Warby Parker has expanded its brick-and-mortar retail presence with numerous physical stores across the United States. This omni-channel strategy allows customers to experience the brand in-person and receive personalized assistance from trained staff.
Yet, these wonderful sounding attributes do not seem to be enough because its finances paint a much darker picture. Warby Parker went public in 2021 so we have detailed audited financial information for the past 3 years. What you find is that Warby Parker has never been profitable, it reported an operating loss in each of its past 3 years. As a result, it’s seen its stock price decline from a high of $58 shortly after its listing to a current price below $12. In fact, its stock has underperformed both the S&P 500 and the S&P Apparel, Accessories and Luxury Goods index for the past 2½ years running. Clearly this is a company struggling.
So while Warby Parker may sound great on ChatGPT, this company does not make money. Does Warby Parker stand a chance to succeed or will this company eventually go under?
For this exam I want you to answer the question highlighted in yellow above. It is up to you to determine the most critical frameworks/concepts to apply. Your grade will be based on the strength of your arguments, correct use of concepts to support your decision, and the organization of your paper. Please note there is a rubric attached to this assignment, please ignore it. Your grade will be based on exactly what you just read in this paragraph — the strength of your arguments, correct use of concepts to support your decision and the organization of your paper.
