Niche Company/Urban Outfitters

1142 WordsJun 9, 20115 Pages
Urban Outfitters Continuing Case Study: Creating a business. 1 Introduction: The purpose of this report is to investigate the challenges of setting up a business and the difference between the major forms of business; particularly, niche markets as compared to the larger mainstream markets. Define three (3) challenges when setting up a business. Explain why they are challenges. The three main challenges when setting up a business are: cash flow, product supply and demand, and human resources. Depending on the type of business, you will have the initial cost of beginning the business prior to any income derived from that business. What type of product are you selling and is there a consumer…show more content…
2) An exclusive product could be considered hard to find or purchase because of availability making it more special. Individuals want what someone else may not be able to obtain. 3) Individuals are willing to pay more for an exclusive product in order to impress others. The person that is impressed would find value in that item. Urban Outfitters Continuing Case Study: Creating a business. 4 Explain how a niche player chips away at a larger competitor’s base. Give three examples of retailers who have done this. There are three areas in which a niche player can chip away at a larger competitor’s base: go after a different way of delivering a product; provide a premium product or service; and specialize in a one product line. Barnes and Noble Bookstores deliver their product in a specialized way. This bookstore offers a wide variety of books for the reader; it would be very rare for a customer to be unable to find a particular book. One can sit in a living room type atmosphere read their purchase while having a cup of cappuccino or espresso. Second Hand Books is a chain offering pre-owned books at a greatly reduced price. This is a very generic way of shopping for books since there is no reasoning to where the books are shelved and coffee is unavailable. Coach
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