Niche Company/Urban Outfitters

The purpose of this report is to analyse the challenges of climb up a business and the difference between the major(ip) forms of business particularly, street corner markets as comp bed to the larger master(prenominal)stream markets. intend triad (3) challenges when setting up a business. Explain why they be challenges. The three important challenges when setting up a business are cash flow, increase supply and convey, and human resources. Depending on the grapheme of business, you will have the sign cost of beginning the business prior to any income derived from that business. What type of crossway are you selling and is there a consumer direct for the harvest.Finally, staffing the business is excessively a major concern. Depending on the type of business, there will a great deal be an initial cash investment. Property will have to be acquired from which you will operate the business. The cost will depend on the location, where you harvest-festival will be in deman d, whether you are purchasing the property or renting and the amount of square footage needed. The property needs to be beautify in couch to display the increase and there is also the outgo of the inventory labor is also involved with decorating and stocking the inventory.Are you able to do this yourself or will individuals need to be hired? Also, do you as the business proprietor have enough cash flow to incarnate your living expenses during this time, when there is no or little income available? urban Outfitters move Case Study Creating a business. 2 The business began with an creative thinker or product and the question must be answered as to whether or not it is in demand. Consumers must want the product in influence for the business to succeed if the consumer does not want the product, the business will fail. Therefore, matchless must ask if the product ill be in demand in the area where the business will be located for example, coke sleds would not be in demand on a equatorial island. Beginning a business requires an enormous amount of time and avail is often needed. Unless you limit your hours of operation, it would be impossible for a single proprietor to fulfill all the hours needed. At first, one may have family and/or friends unforced to invest their time, but this will lone(prenominal) last for so long. Hiring employees is a difficult task one must make sure the person is well suited for the po induction.The individuals you hire will be representing your business. Define what a niche product is. Give at least three examples of niche products. A niche product is designed to appeal to individuals with specialised interests, needs, and bell range. A few examples of a niche product would imply plus size womans clothing, import automobile compensate service, and ethnic foods. Explain why a niche product big businessman have an advantage in a market. Would price necessarily be an advantage? Explain why or why not.urban Outfitters Cont inuing Case Study Creating a business. 3 Niche products or operate are narrowd and facilitate a small segment of the market. A niche market masters a product specifically, designed to serve only one type of individual in the market. The advantage is the niche company can focus on one group of consumers. expenditure may possibly be lower marketing to a smaller group of individuals is often more(prenominal)(prenominal) efficient and cost effective. However, producing a lesser quantity with a high demand would have the potential of superlative the price. For example, an import car owner desires a mechanic specializing in imported car repair.There is not a high demand for this type of repair service therefore, the price for this service would be higher. The higher price would not be concern for the imported car owner because his main concern is having his car repaired correctly. Identify and explain three reasons why customers would be more for exclusivity. 1) An exclusive prod uct gives the impression that it is special therefore, individuals are willing to pay more for something that is unique or special. 2) An exclusive product could be considered hard to find or purchase because of availability making it more special. various(prenominal)s 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 halts away at a larger competitions sensual. Give three examples of retailers who have done this. There are three areas in which a niche player can chip away at a larger competitors 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 Book chime ins deliver their product in a specialize way. This bookstore offers a wide grade of books fo r the learner it would be truly 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 transfuse of cappuccino or espresso. Second get hold of 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. private instructor stores offer very overpriced limited design handbags priced in the hundreds of dollars.A customer walking into the store is made to smell out as if they are the only person there. Individual attention is there for the asking making each customer feel that her business is truly appreciated. Macys, a large department store, also offers Coach handbags however, selection is limited since the store also offers other designer handbags. Starbucks provides gourmet coffee their mission statement is to provide the best cup of espresso. They d o not offer a food menu their only product is the gourmet coffee. McDonalds now offers cappuccino and other coffee drinks along with their burgers and other menu items.Although their coffee drinks are less expensive, it is well cost the price of a Starbucks to have a good cup of Java. Urban Outfitters Continuing Case Study Creating a business. 5 Summary titan businesses consider niche marketing to be less profitable. However, for small outgo businesses, which have just started off with their business ventures, it can be very profitable. By targeting a group of people with a specialized demand your income can soar. You are not competing with the larger mainstream provider. Therefore, you will obtain more profit with a lesser effort by limiting yourself to that specialized niche market.