Urban Outfitters Continuing Case Study: Creating a Business
Introduction to Business
October 26, 2010
Identify at least three challenges when setting up a business. Explain why they are challenges. Location is important because you want to make sure that your location has all the major necessities, it has easy access so your customers can get to without a problem, it is in a high traffic area, and it is convenient for your customers.
Your partners are important because when you are choosing a partner to run your business with you it is always important to choose someone you trust. You want a person that you have known for a long time. You and that person should have a good relationship so that you wont have to worry about them stealing from the business and hiding money from you. Growth of your business is important because if your business is not popular and you only have a few customers that lets you know that you need to do something to increase your growth. You can increase your popularity by business advertisements, billboards, business cards, and business flyers.
Define what a “niche” product is. Give at least three examples of niche products. A niche product is a small subset of a much larger market. Examples include dog spa a store just for dogs to get pampered, lady golfers a store that is focused towards women who play golf, and swingers club an entertainment club for the adult lifestyle.
Explain why a niche company might have an advantage in a market. Would price necessarily be an advantage? Explain why or why not. A niche company would have an advantage in a market because it would be focused towards a certain demographic. Yes, price would be an advantage in a way because people are going to pay for what they want. However, it can also be a disadvantage because if the price is too expensive then you can lose the majority of your sells.
Identify and explain three reasons why customers...