A journey towards Competitive Advantage
Laserpupl's Successful Journey towards Competitive Advantage through Strategic Planning with CW1
In the fast-paced and competitive world of optical lenses, Laserpupl GmbH found itself facing significant challenges due to the growing number of competitors offering similar products and services. In order to keep market share Laserpupl realized that it needed to differentiate itself from its competitors.Statistics indicated that the competition in the spectacle lens industry was intensifying, with more players entering the market and offering similar products. This made it increasingly difficult for Laserpupl and In fact, industry reports predicted that competition was only going to become more intense in the coming years, making it imperative for Laserpupl to take proactive steps to address this challenge.
The spectacle lens market is segmented into several categories including type, coating type, usage, and geography. The types of lenses offered in the market include Single Vision, Bifocal, Trifocal, and Progressive, catering to the diverse vision correction needs of consumers. On the other hand, the coating type segment includes various options such as Anti-reflective Coating, Scratch-resistant Coating, Anti-fog Coating, UV Protection, and Other Coating Types. The usage segment is further bifurcated into Prescription Glass and OTC Reading Glass. The market has a global reach, spanning across North America, Europe, Asia-Pacific, Middle-East and Africa, and South America.
As per the market research reports, the spectacle lens market was valued at USD 5.6622 Billion in the year 2022 and is expected to reach USD 7,0784 Billion by 2028, reflecting a compound annual growth rate of 5.23% during the forecast period. The COVID-19 pandemic, however, posed a considerable challenge to the market growth as the healthcare industry, including ophthalmology, was severely affected. Eye clinics witnessed a huge decline in patient visits and procedures, and hospitals experienced a significant loss in revenue. According to the “Insights Into Eye Care Practice During COVID-19” article published in August 2020, ophthalmology witnessed a dip of approximately 30% in regular patients during the pandemic and there was a nearly 80% initial decrease in ophthalmology visits in the United States.
Despite the adverse impact of the pandemic, the market growth is being propelled by several positive factors. The increasing awareness about vision impairment conditions and the availability of vision correction solutions are driving the demand for spectacle lenses. The adoption of digital technologies such as smartphones, laptops, and computers has also been expanding, leading to digital eye strain among many people. According to the “Defeating Digital Eye Strain” article published in February 2021, there has been a drastic shift from the physical to the virtual world in recent years, which has led to an increase in complaints of digital eye strain. Research shows that low blue light levels may increase the chances of children developing myopia and nearsightedness, thereby increasing the use of spectacle lenses to improve vision and eye problems.
The increasing number of cases of ocular conditions, such as cataracts and diabetic retinopathy, across the world is also assisting the market growth. According to the “Ageing and Health Key Facts” updated by the World Health Organization in October 2021, the world’s population aged between 60 years and above is expected to reach a total of 2.1 billion by 2050. The number of people aged 80 years or older is expected to reach around 426 million between 2020 and 2050. Hence, these factors are expected to propel the market growth over the forecast period.
Our analysis showed that the spectacle lens industry was highly competitive, with a growing number of players offering similar products and services. In fact, over the past five years, the number of players in the market had increased by 20%, putting pressure on established players like Laserpupl to remain competitive. Additionally, our research indicated that the market was expected to grow at a compound annual growth rate (CAGR) of 5% over the next five years, further intensifying competition in the industry.
Given these market dynamics, it was clear that Laserpupl needed to take proactive steps to differentiate itself from its competitors. By working with CW1, Laserpupl aimed to assess its current competitive position, identify areas for differentiation, and develop a strategy that would allow it to leverage technology, quality, and services to set itself apart from the competition. This comprehensive approach was designed to help Laserpupl establish a sustainable competitive advantage and maintain its position as a leading producer of optical lenses.
Reshaping a competitive advantage
Defining where the competitive advantage lies can be a difference between a one million and one billion dollar business.
CW1 assisted Laserpupl in assessing its current competitive position, which helped the company identify areas for differentiation. This analysis revealed opportunities for the company to differentiate itself from its competitors through the better use of technology, improved product quality, and innovative services.
The competitive analysis of Laserpupl GmbH was conducted with a specific focus on identifying and evaluating the company's key competitors. The first step in this process was to identify the various types of competitors that exist in the marketplace. Three types of competitors were considered, including direct competitors, secondary or indirect competitors, and substitute competitors. Direct competitors were defined as businesses that offered similar products and services to the same customer base within the same geographic area as Laserpupl GmbH. Secondary or indirect competitors were those businesses that offered different products and services but targeted a different clientele within the same general category. Substitute competitors, on the other hand, were businesses that offered different products and services but targeted the same customers within the same geographic area.
To gather information about the competitors, the team evaluated them based on the "four Ps" of the marketing mix. The evaluation considered the product quality and features, pricing strategies, geographic reach, and promotion tactics of the competitors. The team also considered other factors, such as positioning, reputation, people, and partnerships, in order to gain a more comprehensive understanding of the competition. This information was collected through a combination of market research, data analysis, and industry benchmarks.
The final step in the analysis was to assess the strengths and weaknesses of the competitors. This was achieved through a two-hour session with the team, during which the results of the research were discussed and compared with the performance of Laserpupl GmbH. The competitors were ranked on a scale from 1 to 10 based on various criteria, including product quality, pricing strategies, geographic reach, promotion tactics, and other factors. This process allowed the team to gain a deeper understanding of the competitive landscape and helped identify areas where Laserpupl GmbH could improve its offerings and increase its competitiveness in the market. It is recommended that this exercise be conducted annually, with regular refreshes of the data to ensure that the company remains proactive rather than reactive in its approach to competition.
The competitive analysis performed served as a robust foundation for the identification of the competitive advantage factor that would be leveraged by Laserpupl GmbH. The analysis was conducted by carefully evaluating the company's competitors through the lens of the "four Ps" of marketing, which encompassed an analysis of their products, pricing, place, and promotion strategies. Additionally, various other factors such as positioning, reputation, people, and partnerships were also considered in order to gather a comprehensive understanding of the competitive landscape.
During the two-hour session with the company's team, it was imperative that a side-by-side comparison of the performance of the competitors was made with that of Laserpupl GmbH. The competitors were ranked in the aforementioned criteria on a scale from one to ten, which allowed for the identification of their strengths and weaknesses. This information proved to be invaluable in the determination of the unique selling proposition of Laserpupl GmbH, which would serve as a significant factor in differentiating the company from its competitors and solidifying its position in the market.
Leveraging our findings
The findings of CW1 team indicated the need for a comprehensive strategy that would enable the latter to leverage technology, quality, and services to attain a competitive edge in the market. Hence, the strategic plan was developed to achieve this aim, incorporating several initiatives to enhance Laserpupl's competitiveness. A substantial portion of resources was allocated towards research and development, with the aim of improving the company's technical expertise and developing innovative solutions to meet the evolving demands of the market.
Additionally, Laserpupl embarked on a rigorous product design and quality improvement program, with the objective of providing superior products to its customers. The company's commitment to providing quality services was further emphasized by the development of new and innovative services, which helped to differentiate it from its competitors. These initiatives culminated in the successful establishment of a competitive advantage for Laserpupl.
The benefits of this collaboration were immediately apparent in the market. Laserpupl's market share increased by 8%, translating to an increase in revenue of $10 million. This was further reflected in the improvement of the company's profitability, which increased by 16% due to the increased market share and improved pricing power. Moreover, the company's customer base grew by 25%, as a result of its reputation for providing quality spectacles.
The partnership between CW1 and Laserpupl was a triumph in market differentiation and competitive advantage, as it demonstrates the crucial role that market differentiation and competitive advantage play in the success of a company in a highly competitive market environment.