Urban Outfitters Continuing Case Study Part 2: Creating a Business

Urban outfitters: assignment#1- urban outfitters continuing case study part 2: creating a business

1. Identify at least three challenges when setting up a business. Explain why they are

Challenges.

One of the challenges to start up a new business is choosing the kind of business to start.

Most of the time business begins with simple idea and challenges to reality. But before we

Invest on our idea to a new business we need to consider what kind business we try to establish.

Also we need to consider what kind of business will be effective in a particular location and

society. For example in small village with less potential buyers opening to supply the same kind

of product with the rest of the retailers may not be good idea. This kind of business most likely

has week chance to compute with rest of retailers which have strong tie with the society.

The second challenges to start up business are the form of ownership to choose. According

to Kelly I McGowan (2010), introduction to business “The form of ownership they choose will

affect virtually every aspect of establishing and operating the business” (p.68) before involving

in business it need to be consider the most effective form. Capital is one of the factors to

determine the form of business to start. The form of business we choose to establish new

business also affects the amount of profit gain, owners liability and kind of tax we have to pay.

According to Steve Jobs, article of urban outfitters article the business start up with the three

persons as partnership change to sole proprietorship due to personal case. This will affects the

business financial capacity and personal liability sta...

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...ather over coffee, and they were one of the first retailers to offer internet access.

Another niche player would be Best Buy. Although this store is of a large scale, it has a focus

on providing entertainment and computer products and their employees can answer questions

about the products.

The third niche player would be Wal-Mart is that might have more limited offering in the

entertainment and computer areas, and the employees are not as knowledgeable about

entertainment computer products, it is more of a self-serve preposition when you go into

Wal-Mart. Unlike other specialty stores that focus on this same target market, Best Buy does not pay

their employees based on commissions. Rather, the employees are paid a wage and are not as

high pressure as sales people in other store, so the shopping experience is more pleasant for

customers.