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Urban Outfitters Continuing Case Study Part 2: Creating a Business Essay

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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...


... middle of paper ...


...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.




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