Smaller competitor “punch above its weight”

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QUESTION
 
1. In what ways can a newer, smaller competitor “punch above its weight” by taking advantage of the Internet? How can the Internet be applied as a tool to help businesses avoid some of the costs associated with doing business following more conventional or “old school” approaches? How do you see the balance of power in industries like the eyewear industry shifting as customers become more comfortable buying eyewear online?
2. What impact does Warby Parker’s decision to donate a pair of eyeglasses for every pair purchased from them have on customers’ perceptions of the company? How does Warby Parker’s focus on being a great place to work influence how the company is seen in the market?
3. Problem Solving. As an operations management consultant, you’ve been contracted to help a large, traditionally configured clothing company – Marquee Clothes – to become more Internet enabled and competitive in light of customers’ shopping habits, attitudes, and expectations. The company has a well-established supply chain infrastructure, currently has more than 50 retail locations, and has been in business for more than 20 years. Over the last several years, with increasing numbers of mall closings, the business has had to shut several of its stores and is seeing much of the foot traffic that traditionally was its bread and butter start to decline as well. Sales have been off the last three quarters, and the 56-year-old owner of the privately held company is concerned that she’ll have to close more stores if things don’t turn around. She’s been convinced by her college-age daughter that in order to compete, the company is going to have to undergo a makeover and become a twenty-first-century player, with a fully fleshed-out approach and strategy. What should she do? What are some of the first things that you’d advise? What steps need to be taken to help take Marquee Clothes fully into the twenty-first-century?
4. Further Research. What’s happening now with Warby Parker? What kinds of things is the billion-dollar company doing to stay ahead of other competitors and make headway in the eyewear market? What kinds of steps has Luxottica taken to defend itself against Warby Parker’s disruptive tactics?
 

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