Leonardo Del Vecchio (Luxottica) We all know how expensive eyewearcan be. There are so many brands selling sunglasses, which means that there is alot of competition in the sunglasses market. There is Chanel, Prada, Giorgio Armani,Burberry, Versace, Dolce and Gabbana, Persol, Oakley, Ralph Lauren and thebestseller Ray-Ban. With all of these brands, competingfor the customers you would expect them to set the best possible prices withminimum profits.
Right? However, unfortunately for us the customers a singlecompany called Luxottica. Luxottica owns Ray-Ban, Persol,and Oakley. Luxottica also makessunglasses for all of the brands mentioned above and many more and thuscontrolling over 80% of the world’s major eyewear brands. Luxottica Group has dominated this industry (forboth prescription as well as sunglasses) for many years now. This also explainsthe recent rise in competition such as WarbyParker who keep their capital costs relatively low by working withChinese based manufacturing partners.
A man called Leonardo Del Vecchio,the pioneer of the fashion eyewear industry and founder of Luxottica. In thepast eyewear apart for sunglasses used to be considered lame and the people whowore glasses were more often than not, looked down upon. However, in recentyears fashion powerhouses has set them as a trend and made glasses popular and mainstreamlike never before, which also contributed to a massive new flood of customers. Leonardo,who at the time already has an established company and has a large equity ofthe eyewear industry, he saw an opportunity, worked with luxurious brands,capitalized and today runs a monopoly.Sunglasses from Luxottica areusually sold for 10 to 20 times the price it costs to make them, it is alsoquite easy to produce, and the material are inexpensive. In fact, themonopoly of Luxottica over the sunglasses market is so strong people somepeople are willing to go as far as to buy hideous looking sunglasses and theprice can vary from 500$ to absurd amounts such as 15000$. Since Luxottica also owns about 7000retail outlets, they have the flexibility to set the prices as high as possible,but at a price where the customers are still willing to buy their products.
Luxotticaalso owns and operates LensCrafters, Sears Optical, Target Optical, PearleVision, Sunglass Hut, Ilori, OPSM, Bright Eyes and other chains in the UnitedStates, along with yet more chains throughout Asia, Europe, Africa, India, theAntipodes and the Middle East.Oakley, before Luxottica acquired it tried selling their sunglasses cheaper.This angered Luxottica; they kicked Oakley out of their retail outlets andwithin a day Oakley shares crashed. Luxottica then acquired Oakley andmaintained the artificial prices.Ray-Ban being so expensive has to do with highdemand, good branding, and Luxottica’s monopoly on the eyewear market. Their price does not signalize superiorquality in any way. Ray Bans became popular because JFK and Tom Cruisewore them in several movies. However, the brand was not always exclusive sincethe glasses were originally available almost everywhere.
Before Luxotticabought Ray Ban in 1999, you were able to buy a pair at a gas station for 29$.After Luxottica bought Ray Ban, theywithdrew Ray Bans from the market completely. This created a higherdemand. Now that Luxottica made the brand more exclusive, they are able tocharge a higher price.Next time to be a little cautious the next time you buy those expensive sunglasses.Moral of the story: “The correct price of a product is what a customeris willing to pay.” Mark Zuckerberg (Facebook) Mark Zuckerberg, one of the world’s most successful entrepreneurs. If you have been living under a rockthese past years and have never heard of Mark Zuckerberg before, here is anintroduction to the youngest billionaire in the world and former Harvardstudent.
Mark Zuckerberg, thefounder of Facebook was born on May 14, 1984 in New York. MarkZuckerberg has been successful throughout his whole life. Even in High School,the young entrepreneur prodigy showed had had what it took to become great byhard work and dedication. That hard work he put in school, later on earned hima spot at Harvard University. A school notorious for the success stories ofmany students and many dreams come true.During hissophomore year at Harvard, he created a website called Facemash. A website where students could vote and rate eachother anonymously based on appearance. The site was immensely popular, but hadto close down due to breaking the school policies, mainly because some studentsdid not appreciate pictures of themselves being sharing without their consent.
After thesite down had shut down, Zuckerberg realized the potential, a site where peoplecould connect together had. He evolved, expanded on his previous project andmade a site where Harvard students could register a profile and connect witheach other. With the help of his friends and investors that ‘The Facebook’ waslaunched. The user base grew at an exponentially fast rate, and within the nextyear, it had spread and got mainstream attention in the United States. Facebookgrew into an online social media and social networking service. Facebook todayhas over 2 billion users and 1.
37 billion people on average log onto Facebookdaily and are considered daily active users. However, not everything has beensmooth sailing, both Facebook and Mark Zuckerberg has gotten in a lot ofcontroversy and criticism. Both have been sued numerous times, accused ofcollecting huge amount of data from the users’, eavesdropping phones to targetappropriate ads, tax evasion and censoring information etc.
Elon Musk (SpaceX & Tesla) If you are a car, space or science enthusiast, you have probably heardthe name Elon Musk mentioned countless times. The entrepreneur and billionaireis a fierce competitor in the technological world, people sometimes refer andcompare him as the “Iron Man” because of the similarities they share. He hasinvested in many promising technological projects for the sake of our futureinstead of personal financial gain and that has led to international mediaattention and praise from people all over the world. One of his most recent announcement has led to even more praise as herevealed plans to make internet accessible worldwide by sending thousands ofsatellites to orbit around the earth. You are now probably wondering where heis from and how did he become so rich and beloved by the public. However, theroad has not been easy for Elon, far from it in fact.He entered fields that no one with the mindset of earning money wouldever dare to think of and he knew it could easily end up not working out, buthe wanted to work with things he was interested in and passionate about; whichwas space travel, the internet and renewable energy sources. Elon Musk believesthat everyone can achieve great things as long as you have a passion and gainhappiness from it, work hard and never give up.
Which he did. Elon Reeve Musk (born June 28, 1971) is aSouth African-born American executive, investor, engineer, and inventor. As a child,Elon Musk was smart and developed an early interest in programming, samepattern as Mark Zuckerberg. He later on decided to move to Canada, to study and got a Canadian citizenshipthanks to his mother. After his studies in Canada, Musk decided to move toAmerica where dreams come true. At age24, he started a company named Zip2, which he sold to Compaq for 307 milliondollars.
Musk started a new project, which would become the notorious PayPal. EBaybought PayPal for 1.5 billion dollars and instead of living life, traveling orbuying a private island Elon Musk took all the money he made and invested itall in two companies who were at the time on the brink of bankruptcy.
Elon Muskbelieved they could change the world and the future for the better; he boughtSpaceX and Tesla Motors. SpaceX is aprivate company who designs, manufactures and launches advanced rockets andspacecraft at the same time reducing the price tag. The company was founded in2002 to revolutionize space technology, with the ultimate goal of enabling peopleto live on other planets. A group ofengineers who wanted to prove that people did not need to compromise to driveelectric – that electric vehicles can be better, quicker and more fun to drivethan gasoline cars founded Tesla in 2003. Today, Tesla builds not onlyall-electric vehicles but also infinitely scalable clean energy generation andstorage products.
Tesla believes the faster the world stops relying on fossilfuels and moves towards a zero-emission future, the better. Today boththese companies are huge and successful, but I has not always been that way. Ithas been a long and rocky road for Elon Musk to get where he is now. At theearly stages of SpaceX and Tesla, Musk faced numerous challenges whom resultedin failure after failure; he did not give up and look where he stands todaybeing the CEO of two major corporations with a combined worth of around 70billion dollars. While those companies are, where Elon Musk puts most of hisfocus on. Musk has started experimenting with new technological innovationsduring the recent years and acquired Hyperloop One & Solar City.
Hyperloopbeing a new way of transportation and Solar City focusing on utilizing thepower of the sun to our benefit.