The Eyewear Industry- Analysis and Recommendations

Thèmes abordés

Eyewear industry sector strategy Luxottica pestel annalysis

Résumé du document

The eyewear industry began during the 18th century, in France (Pays de Morez, in Jura – North East) inspired from the invention of Roger Bacon of two convex lenses inserted in wooden rims joined together by a nail.

In France, Jura is still the main geographic point of this industry where, all the corporate and innovation departments are based, and coordinated with the Plastics valley in the Oyonnax area (for the extraction of raw materials for glasses) and Paris for manufacturing.

Today the competition on this market is worldwide. Italian and Asian manufacturers entered the market with high competitive advantages on prices and volume of supply. This new competition shows totally new schema of the industry, which is harder to succeed in.
The vision of eyeglasses also changes today, from a healthcare vision to a fashion accessory: an evolution that revolutionizes the market and provides new strategies for existing and new companies.

We organized our analysis through 3 parts: First, the study of the business environment (Supply), secondly, the analysis of the worldwide demand, and finally, our recommendations about this market.

Extraits

[...] Moreover the experience earned by those two companies enables them to have economies of scale whereas a new player who wishes to use this strategy couldn't achieve such a level of prices neither quality. They wouldn't be able to have any competitive advantage. As we've seen on the market analysis, the industry is at the stage of maturation, leaving only small spaces for new players. The only possible way to enter the market is by using a strategy of differentiation on the design. To have new products that differ from the competition represents the only open door to the eyewear industry. [...]

[...] Moreover the experience earned by those two companies enables them to have economies of scale whereas a new player who wishes to use this strategy couldn't achieve such a level of prices neither quality. They wouldn't be able to have any competitive advantage. As we've seen on the market analysis the industry is at the stage of maturation, leaving only small spaces for new players. The only possible way to enter the market is by using a strategy of differentiation on the design. [...]

[...] The market is huge, it can be compared to the telephony market in term of demand The distribution in the eyewear industry is well developed; you can find more than 9000 optical stores in France for example. We can say that the distribution channel in the industry is well adapted to the market which is looking for proximity of the stores Health is now an important preoccupation in all the western countries The progress in research and development in this sector make it more and more pleasant to wear glasses, it can then attract new customers. [...]

[...] The Macro-economic environment We are analyzing the macro-economic environment through the PESTEL Framework, which help us to highlight the key drivers for change in this Industry. Political factors: Amendment drafted by the government and passed by the Senate in November 2006, renew the patient's glasses within three years since the first prescription glasses, with no obligation to consult an ophthalmologist again Economical factors: Many outsourcing for reasons of production capacity, competence or cost Increasing relocation (offshoring) of the manufacturing operationsin countries with higher competitive advantages. The manufacture of frames is a sector which generates a lot of money. [...]

[...] The Eyewear Industry- Analysis and Recommendations Table of Appendixes I. Introduction II. The Business Environment A. Key characteristics of the industry B. The Macro-Environment C. The Industry analysis 1. Five Forces Framework 2. [...]