An International Optical Chain Lenscrafters - Case Study Example

 LensCrafters: An Analysis LensCrafters is an international optical chain consisting of over 860 special service shops with on-site eyewear production facilities. It is the largest optical chain in the United States. The company was founded in the US in 1983 and eventually spread to countries like Canada, Puerto Rico, and Hong Kong. On-site independent optometrists are the major feature of LensCrafters stores. LensCrafters stores maintain all sources required to deliver ‘one-stop-shopping’ and eyeglasses ‘in about an hour’ so as to improve customer shopping experience (Collier & Evans, 2011, p.117). This paper will specifically discuss LensCrafters’ operations management, value chain, and service-delivery system design. Calloway (2009), while analysing the operations strategy of LensCrafters finds that the organisation pays particular attention to improving customer loyalty through delivering legendary customer service (p.35). As market analysts point out, the firm strives to deliver superior overall value for meeting individual needs of each customer. The on-site production of perfect quality eyewear appears to be the major highlight of the firm’s customer service. This facility is really assistable for customers to save considerable amount of their time and hence to enjoy a convenient shopping experience. Undoubtedly, this innovative customer practice would assist the organisation to effectively confront with the stiff market competition in the modern optical market. In other words, improved shopping experience and enhanced customer loyalty can aid the organisation to gain a competitive advantage in terms of sustainability. It is also identified that LensCrafters emphasises developing associates and leaders in the global marketplace with intent to strengthen its market position and to address competition pressures successfully. In addition, this operational strategy is also beneficial for the company to cut down its operating costs and to improve its profitability. The organization employs a differentiation strategy to promote brand recognition and remain to be unique in the optical market. Consumer behaviour studies and other market research analyses indicate that the firm’s differentiation strategy has assisted it to make its products familiar to customers and thereby influence their purchase decisions. Market studies also reveal that the organization’s distinct business strategy is really appealable to customer groups who consider time as the paramount factor. In addition, the company has developed a well shaped diversification strategy in order to make a wide variety of eye care products and services available in once place. Despite relatively huge initial investments, the idea of maintaining production laboratories in stores has greatly benefited the company to ensure perfect product/service quality and hence to focus on individual specifications of each customer. LensCrafters has developed a pay later program in order to make its services affordable to all. In addition, currently LensCrafters offers one of the improved extended protection plans in the market. Finally, the company performs outstandingly in terms of customer relationship management and it benefits the firm to retain existing customer and to attract new potential customer groups. The LensCrafters’ operations management activities notably enhance the customer experience. The firm has integrated its manufacturing process into the service facility so as to rapidly respond to customer needs. In the optical industry, it is unusual for customers to get their eyeglasses delivered ‘in about an hour’ and therefore this facility extremely adds value to customer shopping experience. It is to be also noted that the company has a technologically advanced lab facility to ensure that the eyewear products delivered are of superior quality. The organisation has a well developed and integrated service delivery system and has a very attractive physical layout. When a customer enters the LensCrafters’ store, there is a greeter to direct the customer toward the appropriate service area. The firm’s store can be viewed as a service factory. As Collier and Evans (2011, p. 118) describe, the firm’s service process begins when a customer arranges an appointment with an optician and ends when the eyeglasses are delivered and paid for. “Between these two points, the customer travels to the store, parks, receives a greeting from store employees, obtains an eye examination, selects frames, is measured for proper eyeglasses and frame fit, watches the eyeglasses being made in the laboratory, and receives a final fitting to make sure all is well” (Collier & Evans, p.118). The information flow during the service process in the form of prescriptions, bills, and receipts also adds value to customer satisfaction. In short, this comprehensive service delivery system gives customers an improved shopping experience. Intense market competition and corporate social responsibility seem to be the two major challenges facing the operations management. Today there are numerous potential market players in the optical industry and hence it is a troublesome task for the company to survive the market competition. In order to address this issue, the firm needs to promote technological innovations and encourage creativity in operations management. Referring to the views of Werther and Chandler (2010, p. 22), today people are increasingly aware of the social responsibilities of corporations and therefore the LensCrafters cannot sustain in the market unless it pays due attention to the overall wellbeing of the society. It is advisable for the company to set aside a fixed percent of its earnings and to appoint a special committee to perform better in terms of social responsibility. While evaluating the LensCrafters’ value chain, it is obvious that the value chain has significantly contributed to its operations in terms of quality, value creation, and customer satisfaction. As discussed already, the equipments used in LensCrafters’ labs are technologically advanced and this strong technological background assists the company to manufacture and deliver eyewear products on-site without compromising quality. In addition, contact lenses and other eyewear accessories are of perfect quality. Similarly, the organisation has a huge group of friendly and professional workforce who can notably contribute to the firm’s value chain operations. The improved shopping experiences they deliver to customers greatly benefit the company to build brand reputation and customer loyalty. The organisation maintains an attractive website to gain an edge over its competitors in online sales. Market analysts indicate that the firm’s brick and mortar business strategy has been helping it enhance value creation. Since the organisation gives specific attention to the individual preferences of each customer, customer needs barely go unmet and this service model aids the company to ensure customer satisfaction. It is interesting to see that the company consistently makes improvements in its technological landscape through IT and e-commerce innovations so as to deliver high quality customer services, which in turn can satisfy customer interests. There are several types of performance measurements such as customer satisfaction surveys, mystery shopping, targets evaluation, and comparative statistical analyses can be used to measure LensCrafters’ service delivery system design. Customer satisfaction survey is one of the traditional and common methods of performance measurement of a system or service. Generally a company collects customer opinions about particular product/service using the feedback book placed at the exit gate. In addition, there are number of ways including questionnaires, telephone calls, SMS, and emails widely employed today to conduct customer satisfaction surveys. Evidently, customer satisfaction surveys can better assist the LensCrafters to measure the performance of its service delivery system design. Similarly, mystery shopping is also potential tool to evaluate the system design. According to Mckain (2008, p.112), mystery shoppers performs tasks such as buying a product/service, raising queries, posting complaints, or behaving in an unusual manner and thus provide detailed reports concerning their experiences. The LensCrafters may depend on professional market research companies or other hired people to perform mystery shopping and to obtain a clear view of the efficiency of its service delivery system. Targets evaluation is a simple performance measurement technique whereby the management compares the between the firm’s performance targets and actual operational outcomes. This technique can greatly assist the LensCrafters to identify pitfalls in its value chain operations. Finally, the comparative statistical analysis method evaluates and compares the operating results such as sales, revenues, expenses, and profits of the current fiscal period with those of past periods. This technique would greatly benefit the LensCrafters management to analyze the performance trend of the service delivery system. Among these, customer satisfaction surveys and mystery shopping are most recommendable for LensCrafters to measure the performance efficiency of its service delivery system design. The customer satisfactions survey is an easy and cost effective technique to measure performance and it can be completed fast using modern technologies like emails and other internet tools. Similarly, the mystery shopping technique can really assist the company to obtain a more detailed, accurate, and reliable information about the efficacy of this system. The advanced technological background aid the organization to strengthen its value chain. As noted already, the LensCrafters has a technologically advanced lab to deliver high quality eyewear products to its customers. Today the company effectively uses most advanced information technologies in all areas of its service process beginning from fixing a customer appointment to product delivery and payment. This practice greatly assist the company to significantly enhance customer shopping experience and hence to achieve customer satisfaction. In addition, the LensCrafters also applies technological advancements to improve its customer relationship management activities and thereby to build brand reputation in an effective way. The firm employs highly advanced eye-care technologies to examine people’s eyes and to diagnose the problem effectively and more accurately. The firm’s computerised eye testing facility is powered by most advanced technologies available in the industry. LensCrafters’ improved operations management strategies greatly assist the firm to promote brand recognition. This also helps the firm to provide customers with memorable shopping experience. The firm’s value chain operations powered by technological advancements contribute to its performance efficiency in terms of quality, value creation, and customer satisfaction. This study also found that customer shopping surveys and mystery shopping can be more helpful for the organization to evaluate the efficacy of its service delivery system design. References Collier, D. A & Evans, J. R. (2011). OM3: What’s inside? Cengage Learning. Calloway, J. (2009). Becoming a Category of One: How Extraordinary Companies Transcend Commodity and Defy Comparison. John Wiley & Sons. Mckain, S. (2008). What Customers Really Want. Pearson Education India. Werther, W. B & Chandler, D. (2010). Strategic Corporate Social Responsibility: Stakeholders in a Global Environment. SAGE. Read More