About fashion

Question 1

A monopoly exist where there is a certain firm that dominates the market or acts as the main supplier of a particular commodity. The market is characterised by lack of competition for the production, supply and selling of a product or service (Hirschey, & Bentzen, 2016). Luxottica seems to have obtained total dominance in the world’s production of eyewear, by producing sunglasses and frames for almost every designer brand. The 60 Minute video reveals that about half a billion people have glasses made by Luxottica, which has resulted to the firm attaining monopoly in the eyewear market. The firm goes to an extent of charging very high prices, at $400-500 a pair of the glasses as compared with other brands that charge lower prices (CBS News, 2012). The firm attain its monopoly status by owning various designer brands which include Prada, Dolce & Gabbana, Channel, Burberry, Versace, Ralph Lauren and Tiffany. The company also owns too much of this eyewear industry which include both the supply chain and the distribution network. It owns outlets such as Lenscaftewrs, Oliver Peoples and Pearle vision and also owns Eyemed, the most dominant company for vision insurance. This enables the company to charge high prices for the products it sells and earned abnormal profits of about $8 billion. Its monopoly status was enhance by buying Oakley, its biggest competitor in 2007 (CBS News, 2012). This means the company can set high prices as much as it wants to and other players in the market will follow.

Question 2

If the smaller competitors want to upset Luxottica’s market dominance status, they would have to engage in marketing strategies that will capture the attention of the consumers and make them aware of the unreasonable prices they are paying for the eyewear products. The easiest way this monopoly could be busted is for the consumers to understand that they are products are overpriced. Competitors like Warby Parker should thus follow this strategy in putting up a competition (Carlson, 2012). In order to chip away at the practices of Luxottica, the smaller competitors should turn to online selling and marketing which will enable them to sell cheaper alternative eyewear products. They should initially target those consumers on tight budget and whose coverage is not part of their vision insurance plans.

Question 3

As the owner of a Luxottica’s main competitor, I would aim at ensuring that the market will be made less consolidated. This would be through providing enough information to the consumers about the competitive pricing. This would make the consumers to make informed economic decisions and thus lead to the eyewear becoming less exploitative and more efficient. Moreover, I would ensure that high quality glasses are produced but sold at least expensive prices, which will be enable by online retailing.

Question 4

As one of Luxottica owners, I would seek to diversify the products brand by including sportswear in the consumer products. With deep capital capability, the diversification strategy would work well since the company is able to overcome the hurdles of heavy investment as well as man power needed. Sportswear products like clothing and shoes that are sold alongside eyewear products would capture more of the customer’s attention, which would give the various brands a huge boost. The products variety would safeguard the company against depending on a single line of products in the face new entrants in the market.

 

First quiz

The results shows a positive response to my capacity of becoming a fashion entrepreneur. The results characterises an individual with the potential to become an entrepreneur.  They are in line with good qualities of an entrepreneur, since they give a description of an individual who enjoy dealing with concrete and real-life situations such as winning over new clients, closing deals and the reviewing of information. The results also shows an individual who is able to relate to other people is a good trait of a person who want to venture into entrepreneurship. They also portray me as a person who, when faced with obstacles can look for different ways of achieving their goals or try a new thing. The ability to be highly organised is also shown, so that the daily schedules and activities are well planned.

Second quiz

The results show that my personality aspects as relates to this measure are more than 17.Thus I possess the basic characteristics of an entrepreneur, a fact that is shown by the desire to make decisions on my own rather than listening to individuals whom I know are not as capable as I am. L don’t like remaining in mediocrity since I like to challenge myself out of a comfort zone, which is driven by the desire to win. In order to be my own boss, I strive to search for new but better things to do, and do such things in a different ways. This ultimately leads to deep questioning of the conventional wisdom and manner of doing things especially in situations where there are different views from different people. I believe in letting everyone raising their views, assessing their opinions and then going with the best even if it does not augur well with the majority. My ideas are liked by most people I share with especially when dealing with difficult situations. Most of these are my friends who are entrepreneurs, and who are excited by my zeal to succeed my things, especially the joy I derive from selling things. I attribute this to my background where I involved myself in incoming generating activities during the school holidays.

Essay

The overall information represented by the questions help in evaluation of one’s fitness to become an entrepreneurship. The results help in measuring that extent of fitness and shows that I can make a good fashion entrepreneur but with a lot of room for learning and development. For one to be an entrepreneur, there are basic traits that one should have. To start with a person has to derive joy from being a fashion entrepreneur and this is possible if they are passionate about it. Being in entrepreneurship is not easy since one will have to face obstacles that they will have to overcome, thus they should be resilient. Moreover, being able to related to people will assist in completing deals, winning a lot of customers and holding meaningful discussions. To achieve their goals, the entrepreneur should do things differently, and be courageous enough to deviate from the conventional way of doing things (Isenberg, 2010). The desire to achieve results and to reach out to buyers in a big way is another that is shown by the results to be very necessary trait of a fashion entrepreneur. In conclusion, being a risk taker is defined by all the characteristics the entrepreneur possess.

 

 

References

Hirschey, M., & Bentzen, E. (2016). Managerial economics.447

CBS News, (2012).  Sticker shock: Why are glasses so expensive? 

 Isenberg, D. (2010). Should You Be An Entrepreneur? Take This Test.1. Retrieved from: https://hbr.org/2010/02/should-you-be-an-entrepreneur

 Carlson, N. (2012).Warby Parker Wants To Destroy A $20 Billion Company That Charges Customers Insane Prices