Case 1:

PatientsLikeMe: Allowing People with Serious Diseases to Connect with One Another and Exchange
Support and Advice

DISCUSSION QUESTIONS

1-36. Of the reasons articulated in Chapter 1 that motivate people to start businesses, which
of the three reasons was the primary motivation behind Jamie and Ben Heywood’s
decision to launch PatientsLikeMe?

Answer: A desire to pursue their own ideas. Also, a desire to make a positive difference
in people’s lives.

1-37. How do those who are leading PatientsLikeMe practice “execution intelligence”?

Answer: PatientsLikeMe seems to be almost singularly focused on execution intelligence.

In looking at the site and how people with serious diseases are able to interact with one
another, one gets the impression that a tremendous amount of thought and empathy
for people with serious diseases was put into the way the Web site and user experience
has been set up.

Another sign of execution intelligence is the way PatientsLikeMe makes money. Rather
than charging users for its service, it generates revenue by selling aggregated data that it
collects from its online patients’ communities to medical companies. This lowers a
barrier to participation (not having to pay a fee to use the service), which in the end
makes its communities larger and richer. It also makes money by helping pharmaceutical
companies enlist participants in drug trials and studies. This initiative is a win-win-win
proposition. It’s a win for pharmaceutical companies via an efficient method for signing
up participants for trials. It’s a win for patients with serious diseases, who are often
eager to sign up for any initiative that might improve their condition or reverse their
disease. And it’s a win for PatientsLikeMe in that it generates revenue.

1-38. What type of start-up firm is PatientsLikeMe?

Answer: PatientsLikeMe is an entrepreneurial firm.

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 Case 2:

Rover.com: Don’t Chuckle: This Is One Impressive Business Idea

1. In the United States, what environmental trends are supporting the development of
Rover.com’s business?

Answer: Most students will assemble a list that includes (1) increasingly mobile
population—which necessitates that dog owners need their dogs watched by others
more often, (2) aging of the population—many older people have dogs for
companionship, and (3) increase in the spread of technology and mobile devices—people
may be more willing to leave their dogs in the care of others if they can get frequent
updates on their dogs via e-mail and other forms of digital communications.

Situation
2. How might Rover.com use focus groups to gain a better understanding of its current and
potential customers and their needs?

Answer: Most students will revert to the information in the chapter about focus groups.
Challenge your students to apply the material in the text to specifically how Rover.com
would setup focus groups and utilize the information gleaned through them.

3. In this chapter, we noted that a true business opportunity is attractive, durable, timely,
and anchored in a product or service that creates value for a buyer. To what extent does
Rover.com’s service satisfy each of these criteria?

Answer: Rover.com’s service is attractive in that it places a dog owner’s dog in a home
rather than a kennel. This aspect of Rover.com’s service provides a dog more personalized
attention and is healthier, given that the dog will not be in close proximity to a large
number of other dogs, some of which may be sick.

Special service healthy together

The service is durable in that the number of dogs and dog owners in the United States
continues to go up. The amount of money that people spend on their pets, dogs
included, also continues to go up each year.

The service is timely in that the population in general is increasingly mobile, meaning that

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 people travel more which necessitates dog owners needing to find others to watch their
dogs.

Finally, the service is anchored in a product or service that creates value for a buyer. The
entire intent of Rover.com is to provide a dog owner a better experience that placing a
dog in a kennel. There are many examples throughout the case where Rover.com
achieves this objective.

Case 5:

What environmental trends and business trends are working both for and against Warby

Parker?

With regard to business trends, Warby Parker is attempting to break the near-monopoly on

eyewear in the current market. As it stands, the market is dominated by high-priced eyewear firms who

operate a monopoly. This stands to help Warby Parker because they have developed a cheaper

alternative that makes the eyewear more accessible. At the same time, this can hurt them because they

are not a recognizable business brand, and do not carry the same status a company like Gucci or Chanel

would in the marketplace. Succeed

Also with regard to environmental trends, Warby Parker places an emphasis on social causes

such as leaning towards giving to charity and volunteering in the community. This creates social capital

for the firm that will allow consumers to be more attracted to the new brand – it is likely the stigma of

not being a huge brand will be relieved by the additional social mission and the coolness it entails.

How has Warby Parker’s social mission contributed to the firm’s success?

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 Warby Parker’s social mission is a critical component of their success. They are not a huge brand

name that carries prestige like Gucci or Chanel, so they must provide another component in their value

proposition that can make up for this.

With their social mission of volunteering and charity, when people buy Warby Parker products,

they feel like they are doing good. They are buying into a good-natured initiative and culture – they are a

component of that community and actively participating. When comparing between two nearly-identical

products, people will likely choose the one that adds some type of positive impact to their world.

Friends

Contributed

Additionally, there is also an internal component. Warby Parker’s social missions give the firm a

purpose other than generating profits, which is attractive to all of its internal stakeholders as well.

Employees and others are more motivated and satisfied with their work knowing it is going to a good

cause, increasing morale and productivity.

What are some reasons that would support a decision by Warby Parker to expand to products

beyond glasses? Purches

There are two main reasons that would support a decision to expand:

1. Warby Parker stands for social causes, and although they are not yet a largely-recognized

brand, 80% of Americans have said they’d be willing to switch brands for a social cause.,

2. Although they are not as big as Nike, they have a growing brand image to capitalize on. Their

brand image can translate to related industries.

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 What are some reasons that would support a decision by Warby Parker to not expand to

products beyond glasses?

Warby Parker has created its reputation on disrupting the eyewear industry and challenging

Luxottica. They are fundamentally changing the eyewear industry, and should continue to focus their

resources on further disruption and industry revolution.

What actions has Warby Parker taken that have allowed the firm to at least in part successfully

disrupt a large industry that has been dominated by a single company, Luxottica?

Warby Parker has undercut Luxottica in pricing by offering competitive, yet relatively inexpensive

eyewear alternatives. Warby Parker’s social stances and contributions to society helped nudged

consumers toward the brand. When choosing between two nearly-identical brands, consumers chose

the one that was not only inexpensive, but also contributed back to society. Prices

Warby Parker has specifically targeted a younger demographic that Luxottica was doing a poor

job in reaching out to. They have branded themselves as being hip, young, and progressive – all

adjectives young people prefer. Also, they have a far larger online presence than Luxottica, further

attracting a younger audience and eliminating brick-and-mortar costs.

What can an entrepreneur learn, regardless of the industry he or she is entering, by how

Warby Parker redefined the customer experience in its industry? Succeeds

An entrepreneur can learn that convenience is a key factor in building a customer base. The

Internet is a key tool in marketing, and too many older industries – particularly those with few

companies running them – have severely failed to catch up with the times. This creates a critical

weakness that entrepreneurs must take advantage of. Warby Parker also capitalized on this by

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 introducing their Home Try On program, which allowed customers the convenience of trying on glasses

without the financial risk or need to visit a brick-and-mortar location.

Segment market

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