Essilor Case

Their innovation is at all levels.

>What were the opportunities and threats in the optical industry? How did these trends affect industry growth?

Opportunities

1. Innovation at all levels - products, services and marketing

2. Conquer the middle of the range, in developed countries,

3. Pursuing a policy of acquisitions and partnerships with prescription laboratories and distributors.

4. Conduct initiatives at a very early stage in the value chain to offer information, check-ups and supply lenses, in regions of the world where access to optical care is difficult.

Threats

1. Narrow PORTFOLIO of products – Can diversify to mitigate risks

2. Government regulations and industry stagnation

3. COMPETITIVE industry with focus on technology

Trends

1. Demographic

* Near-sightedness

* Far- sightedness

2. Geographic locations

* Low income countries

* Mid income countries

* High income countries

3. Retailing

* US – retail chains controlled most of the market

* Europe- retail chains and controlled groups amounted for the majority

* Retail consolidation trend was spreading to other parts of the world as well. This would further reduce the lens manufacturers bargaining power because their gross margins were lower for their products which they distributed through chains.

4. Substitute products

* Consumers use both contact lenses and glasses.

Worldwide contact lens market – 2010:- $6.1 billion

2015:-$11.7 billion

* Lasik surgery – more than 18 million people

5. Replacement markets

* Eye wear need to be maintained and inspected in regular intervals.

* Most of the customers use their eye wear more than the service period.

6. Insurance programmes

* Reimbursement of prescriptions – removing this option would affect the demand for corrective lens in this...