Monopoly: Luxottica

Two monopolies a majority of americans and the world know of, is Microsoft and AT&T. They are leaders in today's technological age. Both companies came from simply thoughts that innovators put to the test and made happen. Through hard work and dedication, these companies help people across the globe, whether it be a phone call to 911 or using work to write a paper that depends on one graduating from high school or any education. One of these companies was broken up into smaller little companies, which would grow to be very important, and one, even to this day, is still intact and still a leader in computer software.

Warby Parker has two main product lines. One is eyeglasses, the other is sunglasses. For the eyeglasses, Warby Parker use the method of Demographic segmentation that divides the market into segments based on the targeted customers’ income and occupation. They are targeted at the young people who studying at the college or the people who have low or unstable income. Since Luxottica dominates brick and mortar glasses sales, at 49.5% market share. It will cost around $500 to buy a new pair of glasses, most of the college students find it really expensive to have a high quality and fashionable prescription glasses. Warby Parker evaluated each market that the company is going to enter,

“Everything is worth what people are willing to pay,” this quote is inaccurate because this company Luxottica knows that there will be uninformed consumers, so they keep their prices high. No matter what price the eyewear is, consumers are willing to pay. Luxottica is just keeping the prices up because the consumers don’t care. If they cared, then they wouldn’t buy any random eyewear because of the not affordable price. If Luxottica considered lowering the price, then they would have even more consumers, yet they would have to speed up the production of eye wear. Now that I think of it, Luxottica wouldn’t have to speed up producing their stock because it doesn’t cost that much to make them. Walmart really is a competitor of Luxottica because

Rivalry among existing competitors describes the intensity of competition between “Broadway’s Café” and existing coffee shops in an industry. A highly competitive industry might result from many players of about the same size, on single dominant competitor, little differentiation between competitors’ products and services

Warby Parker is a designer eyewear brand found in 2010, which has shifted the eyewear market by simply questioning why the cost of a pair of glass is same as an iPhone? Warby Parker has realized that the Luxottica, who own a huge market share in the eyewear industry, has been trying to control the price of designer eyewaear by keeping extremely high prices that are not affordable to all customers. This long-established industry high price model has been removed by Warby Parker by seeing things in a new perspective (Patino,2017).

Oligopolies have been around ever since there is trade. However, it has only recently gained grounds in this age of globalisation. Never before has oligopolistic competition been so fiercely contested across so many industries.

Warby Parkers glasses are designed, and made with the same materials and in the same factories that produce Luxottica’s designer glasses. So there is no quality difference between the brands. Warby Parker shows that their competitors have enormous mark-up in eyewear retail. Warby Parkers were able to find success on their pricing strategy by market penetration and reference prices, recognizing that the market was sensity to price even though majority of the market was priced significantly higher. Warby Parkers used market penetration pricing to set its product at a lower price at $95 where a majority of the market was at $500. Their target market was also concern with price quality Warby Parkers ability to use the same manufactures and materials gives their target audience the ability to purchase a luxury item but at an affordable cost. However, this staragy of entering onto a market with the lowest prices only is able to work if Warby Parker is able to remain profitable. They are able to keep their cost low and their break-even point low as well by removing the middleman and passing the savings onto their customers. Warby Parker is able to remain

The Mickey Mouse Monopoly documentary reveals the obscure social messages behind the animated films created by the Disney Company. Although we are conditioned to believe that these movies are pure forms of entertainment, further examination has proved that there are hidden messages concerning gender, race and class that Disney is instilling in the minds of children. The speakers in the documentary argue that Disney is extremely political and hides its ideas behind innocence, magic and fun. When masked by features that are appealing to a younger audience, it is difficult to realize these ideas without taking a closer look.

The eyewear industry is a tough industry to break into with the giant of Luxottica that has been dominating the competition and it has constantly been looming over it in recent years eager to buy up any threatening competitor that emerges. This section of the paper examines the eyewear industry in terms of consumers, competitions, market/submarket and the existing marketing environment along with highlighting any existing trends.

Many board games are used to bring in family, friends, and even strangers to come together and socialize. What many people do not know is that sometimes these games teaches our society the values, skills, and social statuses in each individual’s life. Video games such as Medal of Honor or Call of Duty teach young teens (even children), the American pride of being a soldier. Board games such as Life teaches individuals about life in general or what is expected by society when children move on to be adults (go to college, have a job, have kids, get married). I’ve decided to examine the Monopoly board game, where it teaches a variety of values, skills, and social inequalities.

The Luxottica Group is an Italian eyewear company founded in 1961 by Leonardo Del Vecchio. Luxottica is the leading designer, manufacturer, and distributor of luxurious and designer eyewear controlling over 80% of the world 's designer eyewear brands. Luxottica has become a leader in the prescription eyewear business in North America with retailers that include LensCrafters and Pearle Vision brands, Asia-Pacific with OPSM and Laubman & Pank brands, and in South America with the GMO brand. Luxottica also operates points of sale for its retail licensed brands in North America under the Sears Optical and Target Optical brands.

It’s clear that Luxottica prides itself on being a fully vertically integrated giant, which gives itself a distinct competitive advantage over its rivals as it has complete control over the entire value chain. There are many make or buy fallacies studied with regards to vertical integration, therefor one may be sceptical towards the idea of full vertical

The coffee shop industry is a monopolistically competitive market; this entails a market situation where there are a lot of large companies competing, but each company has some degree of market power, being able to determine its own price and ergo have an insignificantly small share of the market (low concentration). A monopolistically competitive market besides being a perfect competition has its characteristics of a monopoly too. (imperfect competition). (Monopoly is a market situation where a single company has most of the market for a certain type of product or service and often times accompany inflation of prices which deem inferior products over other companies.)

The board game Monopoly is played amongst a group of 2-8 players. Each player roles his or her dice and move around the board landing on properties, railroads, or utilities. The properties typically raise in value the further along a player moves around the board. The thought of Boardwalk’s value depreciating to Mediterranean Avenue is unheard of in the board game of Monopoly. However, in the real life game of Monopoly, a major city in America (Detroit, Michigan) had experienced a catastrophic depreciation in value that ultimately led to the city filing for chapter 9 bankruptcy. This writing assignment will evaluate the components that led to the rise and fall of a major city in America. First, it is important to examine the components that led to the growth and prosperity of Detroit, Michigan.

From a business standpoint I believe that this action was completely appropriate. If I was the owner or the CEO of this company I may have chosen to take a different route, but in the end my intention would be the same as Chirinos’ decision. She made this decision because she didn’t want her company to continue to live in the shadows of the leading running mate. Compared to Saira, Chirinos understood the advantages that her company had over them, so it 's only right that she exploit their business and take over consumers in that market. Not only is it acceptable for their own personal interest, in effect this allows consumers to become aware of the true differences of the two companies. Whenever this happens, the competition between the companies become even more intense. The customers will win because these companies may allow more deals, innovate new fashion styles, or even stay away from complacency. Once these things fall into place, the companies will begin to understand their target market more clear. The key attributes that Tela would introduce as their edge over Saira would be