Introduction
The establishment of any business venture has an entrepreneur’s interest at heart, in that profitability no matter the situation has to be realized. That is the core business of any venture, and to do this there has to be a given strategy that a business relies on to ensure it makes progress.
The first few years in any business are truly crucial; most entrepreneurs rarely do market analysis to know which clients to get and keep, rather they use their gut feelings, and sometimes are wrong.
As such, particularly few businesses have survived the first three years simply because they have limited knowledge of their own markets, and end up losing more clients than they gain.
In this regard, we look and analyze Warby Parker; a startup company started by three entrepreneurs. They are Neil Blumenthal, David Gilboa and Jeffery Rader, and their main item of trade is cheap eyeglasses.
The idea was motivated by the fact that traditional suppliers and stores selling these eyeglasses did so at exaggerated fees, so the middle to low income earners in society are locked much to their suffering.
The company wishes to extend its market beyond its traditional territories, meaning it is on a mission to gaining more clients than its competitors in regions mostly dominated by the later.
It wishes to acquire new markets major metropolitan cities such as Los Angeles, Chicago, New York, Atlanta, Miami, Seattle and Poland. The following, therefore, is a ‘SWOT’ analysis of the company.
SWOT Analysis
As at now, due to the nature of the eyeglasses they supply and their target market, the company is best placed among its competitors to emerge the top.
In regions where it is operating it commands the largest figures in terms of returns, profits, consumer base and other facets that could be used to determine the overall well being of the company.
It has come a long way from the infancy stages to where it is now, the strength, therefore, is that they totally understand their client needs. It has a large consumer base with trends, patterns and needs that have been shifting in order to be at par.
The age of the proprietors is also at par with that of their market, so the company truly understands their consumer demands hence the trendy, stylish but cheap eyeglasses. This has ensured a loyal consumer base, and an open accommodative administration.
It has the largest market share; therefore, competitors share a remarkably small chunk of the market and are competing among themselves.
This position is motivated by the fact that Warby is not only a profit seeking entity, but also has a charitable mission. This, therefore, means that its position in the market is unchallenged and will not be challenged anytime soon by a profit seeking ventures (Humphreys 2).
The company’s weakness in this is its reliability on the non- governmental organization, which assists Warby to achieve much of its charity ambitions.
It makes profits even without this support, but its client base is loyal to the fact that they were initially wooed by the offer of buy one get one eyeglass for free.
The other weakness it has toward attaining its ambitions is the limited knowledge it has in terms of export. As a result, it may take longer than necessary and end up delaying deliveries to its new markets. This does not auger well with new clients abroad.
The opportunities present in this venture are myriad. It has fulfilled its social obligation through offering cheap glasses and giving out offers to its clients and conquering its immediate market.
Expansion, therefore, as an opportunity is inevitable. These opportunities present themselves in the new markets it intends to venture into. A large consumer base also presents opportunities for huge sales volumes; therefore, it enjoys the economies of large scale production (Humphreys 3).
This automatically shuts out competition given that when it feels an imminent threat it has this offer which works to counter competition.
This strategy is always geared to ensure that competition is weakened and hence competitors no longer stays relevant in the market since higher prices denotes an inverse rate in terms of consumer turn over (Humphreys 3).
The weakness as have been experienced is that it is a startup company and, therefore, is still facing significant threats like any other company. These include competition and the maneuverability required to hack into a tight market where bureaucracy takes center stage.
It also enjoys the support from a traditional consumer base; the response it may get from the new markets may or may not encourage them to continue with these ambitions.
SMART strategy
The growth and acquisition of these new markets is outlined below in summation thanks to the ‘SMART’ strategy. This is an abbreviated word for each of the letters is symbolic as outlined below:
The company’s goal is ‘Specific’ in that it is focused on expanding its market to acquire new territories. This is important if it is set to expand and increase profits.
The overall objective of the company is to command a following among people in the ages of between eighteen to twenty six years. It also intends to acquire new specific markets through their different marketing strategies.
These, as outlined include designing campaign tools targeting the youth. As a result, therefore, three quarters of its advertisements out there would set out to appeal to the youth.
To woo clients, the company shall venture into TV advertisements running twice from October till January; the first TV advertisement shall feature its emphasis on charity, and the second shall have the attributes that appeal to the youth such as trendy, fashionable and will focus more on eccentric styles in order to tap into the youthful consumer.
Both of these will feature in America’s most prominent shows such as ‘Family Guy,’ ‘How I Met Your Mother’ and the likes.
On social media, the company will have active ‘Twitter’ and ‘Facebook’ accounts specific to the regions these cities are; the target is that by the end of January each of these should have over 100,000 followers.
The company will also conduct college tours as part of its marketing plan with the rubrics such as ‘Look Smart,’ ‘Feel Smart,’ ‘Give Smart’ and ‘Buy Smart.’ These objectives are ‘Measurable’ given the segments they have been divided into and the finances put in place.
The attainability of these objectives is preceded by its previous testimonies as part of their expansion from two years ago; they have set a 3 month timeline to have entered the new markets and get a hold of their clients.
They will hire more staff in order to serve these regions well, the ‘Facebook’ and ‘Tweeter’ accounts and other online interactive accounts should have over 100,000 ‘Likes’ in 3 months. This is possible given its popularity at home, and in the new markets it taps into.
The objectives or goals set are highly ‘Attainable.’ The objectives as outlined are to create awareness, increase product visibility, increase the market share and increase sales within a given time frame.
All the above are ‘Achievable’ tasks, to increase brand visibility it will have to employ the vigorous marketing strategies as outlined above; this has an upward effect on sales. Therefore, it will gain more market share as the product gains acceptability.
The above targets will only be achieved if the given resources are provided for in good time and that logistics are well taken care of initially. The company, much as it will still be operational in other areas it has already conquered, has to shift its focus on the acquisition of these new markets.
It will need the skills and expertise of the marketing department, and also those on freights and exports. The production department will also have to work extra hard and ensure that it delivers on both their normal demands and those of the new markets.
The company shall measure its achievements based on the gains it makes on the field and how quickly it responds to and meet consumer expectation (Meyer 28).
The whole mission as described above has a stated deadline. It, therefore, directly implies that it is ‘Time-bound.’ January is set as the deadline for the whole process, and by then the strategy as employed should be working.
The company would need to conduct a customer satisfaction survey in order to identify client expectation, its product weaknesses and strongholds both the new and traditional markets in order to forge new informed strategies (Menon 19).
Conclusion
The recommended study will assist in knowing the nature of its clients in these new markets, their unique needs and, therefore, facilitate customer retention.
Moreover, acquisition would be dealt with by the innovations that result from the need to satisfy consumer needs, for instance, producing more stylish eyeglasses and way cheaper rates than they are offering.
These studies are essential for the sole purpose of eliminating bias while judging the consumer market; the degree to which its loyal customers would want it improve in order to satisfy their needs (Meyer 304).
Works Cited
Humphreys, Albert. “SWOT Analysis for Management Consulting”. SRI Alumni Newsletter (SRI International) 1. 1 (2005): 1-8. Print.
Menon, Andrew. “Antecedents and Consequences of Marketing Strategy Making”. Journal of Marketing (American Marketing Association) 63. 2 (1999): 18–40. Print.
Meyer, Paul. “What would you do if you knew you couldn’t fail? Creating S.M.A.R.T. Goals”. Attitude Is Everything: If You Want to Succeed Above and Beyond. Meyer Resource Group, Incorporated, (2003): 304-4.