URBAN OUTFITTERS CONTINUING CASE STUDY:
CREATING A BUSINESS
Kelly A. Ferguson
Introduction to Business (BUS 100)
July 25, 2010
Identify at least three challenges when setting up a business. Explain why they are
challenges. Three challenges when setting up a business are as follows: taking the risk
of having the business fail, not having enough money to keep the business going, and last
but not least having enough motivation and interest in your company. These are all
challenges because without one or all of these important business factors the company
could not get off to a good start or may not even be open for a certain amount of time
before having to close down completely.
Define what a “niche” product is. Give at least three examples of niche products. A niche
product is a product that is made and marketed for use in a small and specialized but
profitable market. Three examples of niche products are as follows: pierced ear care
solution for targeting the people who have recently had their ears pierced, another
example of a niche product is a card shuffler for the people who really don’t care to take
the time to shuffle cards themselves, and one more other example of a niche product is a
back scratcher to market the people to lazy to scratch their own backs. It would come in
handy for the older customers as well.
Explain why a niche company might have an advantage in a market. Would price
necessarily be an advantage? Explain why or why not. I think a niche company might
have an advantage in a market because niche products are usually unique and target a
certain group of customers and they have less competition. Price could be an advantage
because if a customer wanted an item or needed it bad enough, they would pay the price
whether it was expensive or not.
Identify and explain three reasons why customers would pay more for exclusivity. Three...