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Power Point on URBN's corporate strategy
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URBAN OUTFITTERS (URBN INC)
ORG 601 – Case Study 2Natalie Windle
Company Overview
Founded in 1970 – first store near UPENN campus
14,000 employees and 102 stockholders Public company (ticker: URBN)
URBN brands (5) Urban Outfitters Free People Anthropologie Leifsdottir Terrain
Vision/Mission
Our established ability to understand our customers and connect with them on an emotional level is the reason for our success.
The reason for this success is that our brands — Urban Outfitters, Anthropologie, Free People, Leifsdottir, and Terrain — are both compelling and distinct. Each brand chooses a particular customer segment, and once chosen, sets out to create sustainable points of distinction with that segment. In the retail brands we design innovative stores that resonate with the target audience; offer an eclectic mix of merchandise in which hard and soft goods are cross merchandised; and construct unique product displays that incorporate found objects into creative selling vignettes. The emphasis is on creativity.
Our goal is to offer a product assortment and an environment so compelling and distinctive that the customer feels an empathetic connection to the brand and is persuaded to buy.
source: http://www.urbn.com/profile/
Macroenvironment
Economy Specialty retail decreased 5.7% vs. 5.2%
industrywide in 2009 Sales at clothing and accessories stores
declined 3.7% in 2009, as opposed to 1.9% in 2008
Population/Demographics Young adult target market (teens and 20s)
experienced high unemployment levels, eliminating disposable income
Macroenvironment
Societal Values Older population is focusing on funding
retirement, children’s tuition, and health care costs, garnering a greater share of household disposable income
Technology New technology – retailers applying science to
markdowns with new analyses Result = improved merchandise margins; ability to
source goods at lower prices Legislation
Potential tax implementation/increase on clothing/accessories
Competitive Position/Resource Evaluation
Strategic Recommendations
Already in the works: Wedding line – February 2011 45 new stores in FY11 5-6 new brand concepts over the next 5 years
My recommendations: Outsource more merchandise to department
stores/large mainstream retail chains Launch a children’s line
References
Standard & Poor's. (2010, March 10). Industry surveys: Apparel & footwear. New York: Standard & Poor's.
Thompson, A. A., Strickland, A. J., & Gamble, J. E. (2010). Crafting and executing strategy: The quest for competitive advantage (17th ed.). New York: McGraw-Hill Irwin.
Urban outfitters, company profile. (2010). Retrieved from
http://www.hoovers.com/company/Urban_Outfitters_Inc/rjtjyi-1- 1njdap.html
URBN’s official website contains information on company philosophy, brand information, and press releases. http://urbn.com/