Urban Outfitters C/S Pt 2: Creating a Business

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Urban Outfitters Continuing Case Study Part 2: Creating a Business Michael A. Kidd Professor Jane Bolduc Osburn Introduction to Business October 24, 2011 Abstract In this paper I will identify three challenges when setting up a business and explain why they are challenges. I will define what a ‘niche’ product is and will give three examples of niche products. I will then explain why a niche company might have and advantage in a market and whether or not price would be an advantage. I will also identify and explain three reasons why customers would pay more for exclusivity and how a niche player ‘chips away’ at a larger competitor base. I will give three examples of retailers who have done this. Identify at least three challenges when setting up a business. Explain why they are challenges. As a new business sets up it begins in the start up phase by putting together a business plan. You will find many different challenges that will come up as the business develops. One such challenge for a business is finding the right product to market. Discovering your perfect product entails much detail; like knowing how the product will be produced and who will be producing it. These details touch on the aspects of resources, production, distribution, and creating a sustainable supply of products to market. Another challenge that arises is discovering, ‘who you will be marketing to?’, or your demographics. ‘Who you are marketing to?’, tells you where you are going to sell your products, what stores they will go into, and what parts of the world the offer of your products will be. How your product will be packaged is another challenge. Packaging can be what is appealing to specific cultures, age groups or ethnicities. This challenge goes hand in hand with the first one because both involve detailed research to answer many questions. As the
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