Case
Teaching Notes
Supplementary Resources
Abstract
The EyesNow case presents a startup company with two founders struggling over their growing differences of opinion on the best way forward. After initially proving their concept using their own funds and successfully raising angel funding to launch a chain of retail kiosks selling eyeglasses, Cliff Burris and Corey Smith are at a crossroads. With several stores open and more being built at rapid pace, in-store traffic suddenly has slowed. Results from a meticulously planned marketing campaign are mixed. Competitors are cutting prices. And their angel investor is increasingly unhappy. The case prompts students to think about ownership and control during the early stages after a company’s founding. Strategic issues presented here include investor control, business partner relationships, marketing strategy, and pricing. Students may apply the popular strategic framework of Kim and Mauborgne’s Blue Ocean Strategy to assess the market.
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2023 Sage Publications, Inc. All Rights Reserved
Resources
Exhibit 1: EyesNow Business Profile Summary 2012
MANAGEMENT:
Clifford D. Burris, CEO
Cory Smith, President
Mark C. Warner, VP Leasing
Jim Webb, Controller
INDUSTRY:
Retail sales of prescription eyeglasses, sunglasses, and related products in kiosks located in major shopping centers.
AGE OF COMPANY:
One year.
AMOUNT OF FINANCING SOUGHT:
$2 million
TOTAL PREVIOUSLY INVESTED:
$200,000 from Founders
TYPE OF FINANCING SOUGHT:
Equity
NUMBER OF EMPLOYEES:
5 in one existing retail location.
CURRENT INVESTORS:
Individual Founders.
BANK:
Nations Bank, Washington, DC
LAW FIRM:
Williams & Dobbins, Washington, DC
AUDITOR:
Smith & Wild, McLean, VA
USE OF FUNDS:
Open 17 additional stores in 3 major U.S. media markets within the first nine weeks of 2013.
BUSINESS DESCRIPTION: EyesNow Today is the trade name for EyesNow Holdings International, Inc. which currently owns and operates 1 store built over the last 6 months in the Baltimore/Washington area. EyesNow plans to open an additional 17 stores in the first quarter of 2013, and to continue with a goal of 150 company owned stores opened during the next 2 years.
PRODUCTS & SERVICES: A complete range of prescription glasses, including sunglasses, transitions, and anti-reflective coatings, ready in two days. The stores are also able to fill 26,000 different single vision prescriptions on-site, in about 10 minutes.
MARKETS: 90% of the people over age 45 require prescription glasses. Every 10 seconds someone turns 45. EyesNow plans to make eyewear a fashion accessory by reducing the price, just as “Swatch®” changed the watch industry.
TECHNOLOGY & SPECIAL KNOW-HOW: EyesNow® was named with marketing in mind. Customers call the toll free 1-888-E-Y-E-S-N-O-W to be connected to the closest store. Sophisticated point of sale computers and software provide direct links to one of the largest laboratories in the country.
COMPETITION: Several companies could be competitive with EyesNow, but are believed to currently operate at higher price points, including LensCrafter, Hour Eyes, Sterling Optical, and Pearl Vision.
DISTRIBUTION CHANNELS: Stores are located in major shopping malls within the major media markets. Most stores are kiosks, with some operated as in-line stores in conjunction with contracting optometrists.
OUTLOOK: To meet its goals for rapid expansion, EyesNow must open the added 17 stores, and raise additional capital through a third round financing. Planned exit or IPO in 2018–2020 timeframe.
FINANCIAL PROJECTIONS:
| ($ in 000s) | 2014 | 2015 | 2016 |
| Number of stores | 26 | 150 | 150 |
| Net sales | $8,200 | $41,000 | $83,040 |
| EBIT | $2,060 | ($5,000) | $14,500 |
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2023 Sage Publications, Inc. All Rights Reserved
