Urban Outfitters Continuing Case Study

Urban Outfitters Continuing Case Study Part 1:

The business environment

Connie Beach

Professor John Kell

Introduction to Business – BUS 100

October 30, 2009

Urban Outfitters Continuing Case Study Part 1:

The business environment

The business environment plays a key role in determining whether a business, or our economy, succeeds or fails (Kelly & McGowen, 2009, p. 7). In this report we will be answering the following questions:

1. What three barriers might a new entrant have to overcome when entering the retail industry?

2. What three factors would you have to know about your customers when entering the retail apparel market?

We will also give examples of at least three popular retailers who understood their market and were successful; and at least three retailers who misjudged their market and failed.

What three barriers might a new entrant have to overcome when entering the retail apparel industry? The first would be money. This would be the most common reason an entrant could fail when starting a business. They would need the essential capital just to get started. They must decide where the money is coming from, and how much they need. The entrant needs to research ways to get the money; whether through their own savings, or through financing. In order to be able to get a loan, the bank, or lender, must be convinced of the credibility of the entrant’s credit score, the amount of experience they would bring and their business plan.

This brings me to the second barrier, the business plan. Without a business plan, the business would not succeed. The entrant must prepare their business plan in order to build their strategy and plan their course of action. A well thought out business plan will meet the basic requirements for starting and maintaining a successful business. It is a plan of action for the new entrant to follow, their own instruction manual (The Retail Store Business Plan). They would need the business plan in order to get the loan; it...