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Running Head: Urban Outfitters Continuing Case Study Part 2: Creating a Business

1

Urban Outfitters Continuing Case Study Part 2: Creating a Business

Assignment #1

Vance A !ea

Professor !i""ie !e is$C%emons

BUS 1&&'(ntroduction to Business

October 2)* 2&11


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Urban Outfitters Continuing Case Study Part 2: Creating a Business 2

1 (dentify at %east t+ree c+a%%enges +en setting u, a business -.,%ain +y t+ey are

c+a%%enges

/+ree im,ortant c+a%%enges faced it+ setting u, a business is deciding on a %ocation*

targeting t+e rig+t ,o,u%ation and ada,ting to t+e c+anging en0ironment in order to stay current

it+ ,roduct trends

(n order to correct%y c+oose t+e best %ocation* business o ners may +a0e to consider

some factors and use a ,rocess of e%imination to meet t+e best course of action Pic ing a

%ocation +ere a business can successfu%%y succeed is a sing%e entity t+at business o ners s+ou%d

not o0er%oo A +ig+ traffic area it+ ,edestrians may seem %i e a c+oice for a business but itmay im,ose a c+a%%enge if t+e ,roduct is not tai%ored to t+e demogra,+ics of t+e intended

customers 3Business !ocation ,g 14 C%ear%y* it+out ,%acing an im,ortant em,+asis on +ere

to ,ro,er%y ,%ace a business may be t+e ey to success or fai%ure

/argeting t+e rig+t ,o,u%ation is a%so 0ita% +en estab%is+ing a business 5+en se%%ing

any ,roduct* it s+ou%d be directed to ards an indi0idua%6s ants* needs* and most im,ortant%y*

desires (f t+e ,roduct is not a,,ea%ing to t+e audience* it i%% not se%% Age s,ecific targeting is

one ay to narro do n t+e ,roduct or ty,es of ,roducts* +ic+ t+e costumer ou%d be

interested in buying

Ada,ting to t+e c+anging en0ironment in order to stay current it+ ,roduct trends is

anot+er essentia% 7ua%ity or concern t+at a business o ner s+ou%d focus on /+e c+a%%enge in t+is

is finding +at ,roduct is most ,o,u%ar amongst t+e target audience Business o ners must +a0e

a %ong term 0ision for ,roducts t+at i%% se%% before t+e c+ange of times or decide +et+er or not

to continue ,roduct %ines for t+e ne generation

2 8efine +at a 9nic+e ,roduct is ;i0e at %east t+ree e.am,%es of nic+e ,roducts


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Urban Outfitters Continuing Case Study Part 2: Creating a Business & to ?@ of +uman

beings are rig+t +ands dominate and @ to


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Urban Outfitters Continuing Case Study Part 2: Creating a Business )

Eic+e com,anies may +a0e an ad0antage in a mar et because t+ey a%ready +a0e a

ca,tured audience t+at t+ey +a0e targeted for a s,ecific ,roduct or ,roducts /+at same ca,tured

audience is ,er+a,s %oya% customers* es,ecia%%y if t+ey are satisfied it+ t+e ,roduct and en=oy its

use !ocation of t+e nic+e ,roduct a%so ,%ays a ro%e in t+is decision (n my o,inion* ,rice isn6t

necessari%y an ad0antage for t+e ,urc+aser (f t+e ,roduct is a s,ecia%ty item geared to ards a

s,ecific audience* t+e ,rice ou%d not be of great interest -it+er t+e customer ants items t+at

are e.c%usi0e or not 5+en you %o er t+e ,rice of t+ings +ere e0eryone can afford it* t+e

,roduct ou%d not be 9s,ecia% anymore

) (dentify and e.,%ain t+ree reasons +y customers ou%d ,ay more for e.c%usi0ity/+ree t+ings t+at a customer ou%d ,ay more for its e.c%usi0ity are +ouses* 0e+ic%es* and

c%ot+es A +ouse being tai%ored to t+e meet t+e fami%y6s need is one reason !ocation of t+e

+ouse determines +at ty,e of neig+bor+ood t+ey c+oose to reside in and nearby sc+oo%s and

s+o,,ing districts ,%ay an im,ortant ro%e a%so

Ve+ic%es ou%d be an e.c%usi0e ,roduct because ,eo,%e i%% ,ay more because of +istoric

re%iabi%ity ;as mi%eage to t+e ga%%on and its features are anot+er reason +y t+e buyer ou%d be

i%%ing to ,ay more O0era%%* it ou%d +a0e to accommodate t+e comfort %e0e% of t+e indi0idua%

or fami%y

/+e basic reasons +y customers are i%%ing to ,ay more for c%ot+ing ,roducts is because

it +as demonstrated durabi%ity and ot+ers for t+e trend and sty%e of t+e ,resent time Again*

demand for t+e ,roduct and t+e i%%ingness to ,ay for t+e merc+andise ou%d be t+e ey factor

@ -.,%ain +o nic+e ,%ayer 9c+i,s a ay at a %arger com,etitor6s base ;i0e t+ree e.am,%es of

retai%ers +o +a0e done t+is


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Urban Outfitters Continuing Case Study Part 2: Creating a Business @

Eic+e ,%ayer6s 9c+i, a ay at a %arger com,etitor6s base because +i%e ee,ing t+e focus

grou, on s,ecific items* t+ey t+en increase ,rofits and branc+ out to ot+er ,roduct 0enues or

merge it+ ot+er com,anies to ma e t+eir ,roduct stronger (n ot+er ords* t+e customer no

ma es t+e nic+e com,any t+eir main source for ,roducts instead of t+e a0erage stores /+ree

retai%ers t+at +a0e successfu%%y accom,%is+ed t+is are Fuidsi* Bo s n /ies com and Gumie"

Fuidsi is e%% no n in t+e e commerce or%d for o,erating 8ia,ers com 3Hartman4 (t

is a ,o,u%ar ebsite t+at su,,%ies assorted dia,ers and baby merc+andise to ,arents 3Hartman4

Com,etiti0e ,rices and +a0ing your ,roducts de%i0ered to your +ome it+in t o days or %ess is a

,referred met+od of sa0ing time and money ma ing it 0ery con0enient Eo t+at t+is com,any+as ca,tured t+e desired audience* it can no introduce ot+er co$ ebsites to increase

,rofitabi%ity* suc+ as Soa,s com

Bo s n /ies com is an internet based nic+e retai%er t+at is famous%y no n for +a0ing t+e

most ide$ranging se%ection of nec ear any +ere in t+e or%d 3Hartman4 Po+% started t+is

com,any in +is garage and it 7uic %y gre to a %arger office s,ace* em,%oying a do"en ,eo,%e*

and is ser0ing customers a%% o0er t+e or%d 3Hartman4 Once t+is nic+e com,any accom,%is+ed

its goa% of ,ro0iding nec ties in a%% co%ors and s+a,es* it +as no e.,anded to se%%ing cuff %in s

and +and erc+iefs

Gumie" se%%s surf re%ated ,roducts to inc%ude c%ot+ing* foot ear and accessories t+at

su,,ort s ate and sno industries 3Gumie"4 (t ent from a sing%e store to gro ing o0er )&&

retai% stores 3Gumie"4 Once t+is com,any ac+ie0ed its goa% of ,rofits from retai% stores* t+ey

began to o,en on%ine stores Eo t+e customer can c+oose +et+er t+ey ant to go to t+e ma%% or

stay in t+e comfort of t+eir +omes and s+o, on%ine /+is com,any is successfu% because of its

abi%ity to manage customers 0ia t+e internet* t+ird ,arty internet ser0ices and by retai%


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Urban Outfitters Continuing Case Study Part 2: Creating a Business

References

Business !ocation 3n d4 Diverse Strategies. Retrie0ed 1< October 2&11 from

+tt,:'' di0ersestrategies com'BusinessI%ocation +tm

Hartman , Dennis 3n d 4 Examples of Niche Retail Companies C+ron Sma%% Business Retrie0ed

1 October 2&11 from

+tt,:''sma%%business c+ron com'e.am,%es$nic+e$retai%$com,anies$1>>'2&11$+onda$accord$2dr$cou,e +tm%

Scientific American 3&1Eo0ember 2&&14 Retrie0ed 1 October 2&11 from

+tt,:'' scientificamerican com'artic%e cfmDidJ +y$are$more$,eo,%e$rig+t

Sangeet+a ; 3A,r 1 2&&?4 Dog food brand Pedigree goes vegetarian, eyes niche markets

ydigtia%fc Retrie0ed 2& October 2&11 from

+tt,:'' mydigita%fc com'com,anies'dog$food$brand$,edigree$goes$0egetarian$eyes$

nic+e$mar ets$??)

United States Census 3n d4 Retrie0ed 1< October 2&11 from

+tt,:'' census go0',rod'2&11,ubs'12statab',o, ,df

Gumie" 3n d4 Retrie0ed 1? October 2&11 from

+tt,:'' "umie" com'+e%,'information
http://www.diversestrategies.com/Business_location.htmhttp://smallbusiness.chron.com/examples-niche-retail-companies-13591.htmlhttp://www.fueleconomy.gov/feg/hybrid_sbs_cars.shtmlhttp://www.mpgbuddy.com/vehicle-profile/29777/2011-honda-accord-2dr-coupe.htmlhttp://www.scientificamerican.com/article.cfm?id=why-are-more-people-righthttp://www.mydigitalfc.com/companies/dog-food-brand-pedigree-goes-vegetarian-eyes-niche-markets-994%20%20%20http://www.mydigitalfc.com/companies/dog-food-brand-pedigree-goes-vegetarian-eyes-niche-markets-994%20%20%20http://www.census.gov/prod/2011pubs/12statab/pop.pdfhttp://www.zumiez.com/help/informationhttp://www.diversestrategies.com/Business_location.htmhttp://smallbusiness.chron.com/examples-niche-retail-companies-13591.htmlhttp://www.fueleconomy.gov/feg/hybrid_sbs_cars.shtmlhttp://www.mpgbuddy.com/vehicle-profile/29777/2011-honda-accord-2dr-coupe.htmlhttp://www.scientificamerican.com/article.cfm?id=why-are-more-people-righthttp://www.mydigitalfc.com/companies/dog-food-brand-pedigree-goes-vegetarian-eyes-niche-markets-994%20%20%20http://www.mydigitalfc.com/companies/dog-food-brand-pedigree-goes-vegetarian-eyes-niche-markets-994%20%20%20http://www.census.gov/prod/2011pubs/12statab/pop.pdfhttp://www.zumiez.com/help/information

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