Introduction
Luxottica is an Italian eyewear company that practically dominates the eyewear industry. With the reach and extent of their power, it is apparent that other companies in the industry face serious challenges in competing with them. Naturally, several questions arise from this predicament: could Luxottica be considered a monopoly, and how can smaller players compete against them? This paper aims to answer these and other vital questions.
Luxottica, Monopoly, and Competition
The prices of eyewear across America are incredibly high, and the cause of this is identified as the prevalent of one Italian company on the market. Distinctive features of monopoly are that the seller sets their price as the highest that the buyers are willing to accept since there is no competition to challenge this ordeal (Hirst 3). Luxottica’s position strongly resembles that of a monopoly: they have partnerships with major design brands, own multiple eyewear stores, and own America’s second-largest vision care plan. However, Luxottica does have competitors, and their monopoly expands only in their stores. Therefore, although many signs point in that direction, Luxottica is not a full monopoly.
To gain ground in a competition against Luxottica, smaller eyewear companies could try to secure partnerships with other brands since brand names are Luxottica’s strong suit. Nowadays, a brand name is an important asset, and as a Chief Marketing Officer, I would consider alliances with new and popular brands. I found it very surprising that such diversity as in the eyewear market could be feigned. Perhaps, following this route would benefit other companies in the industry. In addition, I would adhere to the marketing techniques of anti-consumerism and sustainability, which are currently highly popular. The emphasis would be on the fact that materials used as eco-friendly and staff employed are fairly paid.
Conclusion
In conclusion, Luxottica could not be considered a full monopoly, although its reach is highly prominent. In the eyewear market, competition exists, and to further a competitor’s chances, an affiliation with a rising brand name and marketing according to trends of sustainability and anti-capitalism would be beneficial. I learned from this assignment that diversity in the market could be faked, which leads me to the idea that this could be used as a weapon against monopolization.
Work Cited
Hirst, Francis W. Monopolies, Trusts and Kartells. Taylor & Francis, 2018.