MARKETING A BUSINESS

Urban Outfitters Continuing Case Study



Urban Outfitters Continuing Case Study

Question #1 - Explain why Sears or Wal-mart cannot effectively create a trendy counterculture image. In my opinion I don t think that Wal-mart would be able to create a trendy counterculture because it sales clothes at a lower price. Trendy clothes would not be effective for them because the cost associated with trendy clothes would not be profitable. Wal-mart shoppers are looking for a bargain when they go shopping at their stores. Wal-mart is known for their lowering prices on items in their stores called the Roll Back Price. Wal-Mart said last week that it is stepping up price cuts, although it wouldn t specify how much it is boosting its typical weekly discounts designed to lure customers. (Chin, 2009) They also buy their merchandise in bulk as oppose to small quantities.

I don t think that they would be able to sale merchandise that s for a specific group of people and continue to make profits. Competition is a huge problem for businesses and retail stores for the most part are dealing with this issue during the recession period. Sears has to try and compete with JcPenny s and Khols and as a result of having to compete they have plans to close stores. (Chin, 2009) Sears plans to close 8 stores in April and May, laying off hundreds of employees. (Davis, 2009). So just think how many stores they would be forced to close if they really tried to copy Urban Outfitters way of business that s been profitable for they stores. It s not remotely possible for Sears or Walmart to try and enter a niche market and survive it they attempted this I believe that it would be a disaster for their business.

Question #2 - Could the big box stores sell merchandise identical to Urban Outfitters? Explain your answer.

Examples of big box stores are Wal-mart Super Centers, Costco, and BJ s. These stores buy in bulk unlike Urban Outfitter s who only buy small quantities of merchandise. Wal-mart would not be able to sell merchandise identical to Urban Outfitters because they buy large quantities of merchandise that s geared towards customers trying to save money. (Davis, 2009) Big box stores have a large amount of space making it easier for owners to bring in bigger quantities of industrial goods. (Davis, 2009).

Costco and ...