URBAN OUTFITTERS (URBN INC)

ORG 601 – Case Study 2Natalie Windle

Company Overview

Founded in 1970 – first store near UPENN campus

14,000 employees and 102 stockholders Public company (ticker: URBN)

URBN brands (5) Urban Outfitters Free People Anthropologie Leifsdottir Terrain

Vision/Mission

Our established ability to understand our customers and connect with them on an emotional level is the reason for our success.

The reason for this success is that our brands — Urban Outfitters, Anthropologie, Free People, Leifsdottir, and Terrain — are both compelling and distinct. Each brand chooses a particular customer segment, and once chosen, sets out to create sustainable points of distinction with that segment. In the retail brands we design innovative stores that resonate with the target audience; offer an eclectic mix of merchandise in which hard and soft goods are cross merchandised; and construct unique product displays that incorporate found objects into creative selling vignettes. The emphasis is on creativity.

Our goal is to offer a product assortment and an environment so compelling and distinctive that the customer feels an empathetic connection to the brand and is persuaded to buy.

source: http://www.urbn.com/profile/

Macroenvironment

Economy Specialty retail decreased 5.7% vs. 5.2%

industrywide in 2009 Sales at clothing and accessories stores

declined 3.7% in 2009, as opposed to 1.9% in 2008

Population/Demographics Young adult target market (teens and 20s)

experienced high unemployment levels, eliminating disposable income

Macroenvironment

Societal Values Older population is focusing on funding

retirement, children’s tuition, and health care costs, garnering a greater share of household disposable income

Technology New technology – retailers applying science to

markdowns with new analyses Result = improved merchandise margins; ability to

source goods at lower prices Legislation

Potential tax implementation/increase on clothing/accessories

Competitive Position/Resource Evaluation

Strategic Recommendations

Already in the works: Wedding line – February 2011 45 new stores in FY11 5-6 new brand concepts over the next 5 years

My recommendations: Outsource more merchandise to department

stores/large mainstream retail chains Launch a children’s line

References

Standard & Poor's. (2010, March 10). Industry surveys: Apparel & footwear. New York: Standard & Poor's.

Thompson, A. A., Strickland, A. J., & Gamble, J. E. (2010). Crafting and executing strategy: The quest for competitive advantage (17th ed.). New York: McGraw-Hill Irwin.

Urban outfitters, company profile. (2010). Retrieved from

http://www.hoovers.com/company/Urban_Outfitters_Inc/rjtjyi-1- 1njdap.html

URBN’s official website contains information on company philosophy, brand information, and press releases. http://urbn.com/